Zcash price recovers 10% after falling below $400 amid developer frenzy
Zcash (ZEC) has shown a daily recovery in the volatility of privacy-focused cryptocurrencies. The token exited following a massive selloff at Electric Coin Company (ECCC) due to management uncertainty. The price of ZEC has risen more than 10% in the last 24 hours, rising from a low of $396.
In the year Zcash (ZEC), the privacy-focused cryptocurrency that has seen significant growth in 2025, has recovered from below $400 with an impressive 10% increase in the past 24 hours.
Zcash (ZEC) was trading at around $436 at the time of writing, with the token posting a double-digit recovery after plunging to around $396 amid negative ecosystem developments.
Why has the price of Zcash dropped?
Notably, the recent price action follows a massive selloff fueled by internal governance issues in the Zcash ecosystem.
In the year On January 7, 2026, the Electric Coin Company (ECC), the development team historically responsible for Zack's core development, announced a mass layoff. The dividend has affected the value of ZEC.
It stems from a dispute with Bootstrap's non-profit board.
Developers cited concerns about moving away from the project's original privacy mission.
But the quick reversal suggests that investor interest is high, despite delays in what the upheaval could mean for the privacy coin for Zcash, the developer of the electric coin company.
Zcash price recovers 10%, can the bulls rise?
News surrounding Zcash triggered panic selling, driving ZEC to intraday lows around $389 on Thursday.
It helped wipe out a portion of the privacy coin's market value as the bulls threatened the psychologically important $400 level.
According to data from Coinglass, uncertainty has shown many traders to be bearers.
However, buyers quickly moved in, taking the selling pressure.
The move raised 24-hour liquidity to $7.95 million. Of these, more than $6.20 are short positions and more than $1.75 are long positions.
This double-digit recovery highlights bulls' resilience in the face of new demand for the privacy coin.
Significantly, the Zakash Foundation emphasizes that the protocol is decentralized, open source, and unaffected by organizational changes.
In light of @ElectricCoinCo's recent developments, the Zcash Foundation would like to confirm several key facts about the Zcash network and our sustainable role in the ecosystem.
— Zcash Foundation 🛡️ (@ZcashFoundation) January 8, 2026
The developer split, while disruptive in the short term, won't spoil the Zcash bulls.
“We understand that transition periods in the ecosystem can create uncertainty. But in such times it is important to understand this difference: differentiate between organizational changes and the health of the network. The Zcash network is fundamentally independent of any organization, board or corporate entity,” said the Foundation in X.
From a perspective, can the value of ZEC rise?
Short term, the key for bulls is to stay above $400. Getting close above $450 and retrying $500 would be a big move. If not, support can be reset to around $313, and the soon-to-be-loaded zones will be at $220.
