Privacy Coins Surge Amidst Market Struggles
Privacy coin prices soared to new heights even as the overall crypto market struggled, defying the bearish trend. Dash and Zcash led the rally with weekly gains of 175.6% and 62.5% respectively. The rallies took shape despite a bloodbath across the overall cryptocurrency market, where Bitcoin and Ethereum lost 4.3% and 10.4% respectively. Dash coin trailed behind Zcash over recent weeks after the latter soared by over 300% in the past month alone, climbing to its 2018 highs of $108. After dipping to roughly $19 this summer, DASH coin staged a strong comeback when it jumped to $110, a price level that represents a fivefold increase over the past six months and its highest price since 2022.
Dash Coin's Impressive Rally
DASH coin emerged among the top gainers of the week after soaring over 170% over the last seven days and 263.8% over the past month. According to analysis, the recent surge in privacy coins pushed it to test $136, the upper boundary of a seven-year descending channel. This is the same technical pattern Zcash (ZEC) broke through before launching into a 634% rally earlier this year. The Dash (DASH) privacy coin needs to break past a major resistance for it to move higher and test the 0.236 Fibonacci retracement level at $198. Even so, market veterans warn that history hasn’t always been kind to similar breakouts. This is because the DASH price has faced steep corrections every time it tested a major resistance level. At one point, the coin shed nearly 97% of its value.
For now, experts have warned about a pullback below $100 towards the 200-2W exponential moving average unless momentum strengthens and buyers are able to support the $100 psychological level.
Zcash Price Climbs Significantly
Zcash price mounted a comeback by soaring 700% between September and November. At the time of writing, the privacy coin traded at $540. The growing institutionalization of Bitcoin, Ethereum, and Solana could be a major reason for the rising demand for privacy-focused cryptocurrencies. According to Galaxy Digital, more than 30% of all Zcash privacy coin in circulation is now stored in private pools. This is the highest amount, and it indicates a strong interest in anonymity among crypto users.
Research analyst Will Owens noted that the launch of the Zashi wallet has made private transactions far easier, helping drive this increase. Owens also pointed out that new cross-chain integrations now allow users to move assets between public and private networks while keeping their activity hidden.