Zcash price has dropped over 20% in the past 7 days as the broader crypto market remained in a downtrend. The privacy token now risks a drop to $200 as a death cross appears to have taken shape on the daily chart.

According to data from Coin Insider Daily, Zcash (ZEC) tanked nearly 22% to $231 last check Tuesday, Feb. 24. It has dropped by 28% from this month’s high and 56% from the beginning of this year.

Zcash price has been in a downtrend since the entire development team at the Electric Coin Company resigned from the project following a severe governance dispute with Bootstrap, the nonprofit organization that owns and oversees ECC.

While the organizational split did not lead to the forking of the Zcash blockchain and the ZEC token’s fundamentals remain unaffected, it has raised investor concerns over the future direction of the ecosystem.

The token’s crash was further exacerbated by a broader market drop triggered by persistent liquidations across leveraged markets as Bitcoin fell below several key support levels. The latest downturn comes as investor sentiment for risk assets has remained extremely fragile over the past weeks amid macroeconomic and geopolitical uncertainty.

Meanwhile, data from CoinGlass shows that futures demand for the token has dwindled since the start of this year. ZEC open interest has dropped to $306 million, nearly a fourth of the figures seen in early January.

Zcash price analysis

On the daily chart, Zcash price has dropped below all moving averages, with the 50-day and 200-day SMAs appearing to be closing on a bearish crossover, which forms what traders call a death cross. Death crosses are some of the most feared bearish patterns in technical analysis.

Zcash price action also shows that it has fallen below the Ultimate support level of the Murrey Math lines. A loss below this baseline means loss of bullish momentum and hints at further capitulation.

Hence, the token risks a drop to the next key psychological support level at $200 next, which also closely aligns with the 23.6% Fibonacci retracement level. At press time, the target price remained 14% below Zcash’s current price of $233.