Zcash Surges 12% as Privacy Coins Show Mixed Signals
In the ever-evolving world of cryptocurrency, privacy-focused coins like Zcash (ZEC) and Monero (XMR) are making waves this week. While Zcash has soared over 12% in the past 24 hours, Monero has struggled, slipping by 2% during the same period. This divergence highlights the varying dynamics within the cryptocurrency market, particularly as major coins like Bitcoin, Ethereum, and Solana experience slight gains.
Breaking Down Zcash’s Rise
At the time of writing, Zcash is trading at $383, recovering significantly from recent lows of $334. Zcash’s value surged toward $400, largely driven by increased interest in shielded transactions, which position it as a leading privacy-oriented alternative to Bitcoin. According to CoinMarketCap, Zcash attained highs of $398 across major exchanges.
As sentiment around Zcash grows, the token has reclaimed its spot as a top-20 cryptocurrency based on market capitalization. Additionally, Zcash futures remain a key area of interest, with speculative engagement evident. Data from Coinglass shows liquidations over $10 million, predominantly in short positions, suggesting that traders were caught off guard by the token’s sudden price jump.
What’s Next for Zcash?
The next major resistance level for Zcash lies at $400. Should bulls break through this threshold, the price could push upwards toward $500, aligning with year-to-date highs. However, if the price breaks below $370, sellers could regain control, putting bearish pressures back onto the privacy coin.
Monero Struggles Under Bearish Sentiment
Monero, another prominent privacy coin, has had a challenging week. The token dropped to $360 earlier today and currently trades at $372, marking a 2% decline in the last 24 hours and a 10% decrease over the past week. The bearish trend has extended to four consecutive daily losses, leaving bulls striving to avoid further declines.
Monero’s declining price can primarily be attributed to macroeconomic pressures and reduced interest in futures trading. Open interest in Monero futures dropped to $54 million, a notable decline from $67 million earlier this month. Additionally, technical indicators, such as a double-top formation at $435, suggest potential short-term dips to the $335 support region.
Key Factors Driving the Market
Overall, the contrasting fortunes of Zcash and Monero reflect broader trends across the cryptocurrency market. Macroeconomic factors continue to drive market sentiment, and the upcoming Federal Reserve meeting is adding to uncertainty. Nevertheless, traders and investors remain optimistic about privacy-focused coins amid growing concerns over digital privacy and regulatory scrutiny.
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