Privacy coin season? DASH price rises 100% in a week as Monero and Zcash turn bullish

The strength of the cryptocurrency market appears to extend to privacy-focused coins. The quiet price action of Bitcoin (BTC) often sets an intense period for altcoins to rally, where various groups of currencies may start to turn bullish.

One of those is the segment of privacy coins. For example, Monero (XMR) rallied by more than 50% last week. In the meantime, Dash (DASH) has more than doubled with a gain of 125%, while Zcash (ZEC) recovered by 70% during the same period.

Monero breaks USD downtrend

XMR / USD weekly chart. Source: TradingView

Before the rally, XMR was lagging behind Ether (ETH), as the build is quite similar between the two. After a two-year accumulation period, the price of ETH finally broke higher in early 2021.

Such breakouts often see a support / resistance change (S / R), after which the price of the underlying asset may continue to rise. This S / R reversal zone for the Monero price is marked with the green box where the support was found. This support zone was maintained and XMR price continued to accelerate towards the next resistance zone around $ 300.

XMR / BTC weekly chart. Source: TradingView

Nevertheless, the weekly chart for the Monero BTC pair shows a completely different viewas it is still in a downtrend. Therefore, there may be a rally in the XMR / BTC pair on the horizon. Specifically, a break above 0.006 sats would likely lead to a further increase.

DASH leads the way

Weekly chart of the DASH / USD pair. Source: TradingView

Often times, when one coin in one segment begins to rise, other currencies follow suit. Such a correlation can be found between Dogecoin (DOGE), XLM and XRP, as these often reflect the movements of others and the privacy coins are no different i.e XMR, DASH and ZEC.

Dash, for example, has also been breaking a two-year accumulation period. As long as Dash holds support above the $ 150-170 region, a further continuation towards $ 550-600 is on the table.

Weekly chart of the DASH / BTC pair. Source: TradingView

Nevertheless, the DASH / BTC pair also looks weak, similar to XMR. A break above the critical resistance zone of 0.007 sats would help build bullish momentum. If that level breaks and shifts for support, it is likely to continue towards the 0.016-0.018 sats region.

Such a rally would also be in line with an increase in the USD pair., as the next resistance level lies between $ 550-600.

Zcash is also showing strength

Weekly chart of the ZEC / USD pair. Source: TradingView

Zcash is the third major privacy coin, which also displays a similar chart structure. The ZEC price broke a long accumulation period of several years and changed the $ 80 area for support.

With this S / R change, price rallied to $ 160-170, the next resistance area. As long as Zcash remains above the $ 100-120 area, the resistance zone at $ 350-380 becomes the next logical target.

ZEC / BTC weekly chart. Source: TradingView

But just like the other privacy coins, the BTC pair is still struggling to break out. The critical level for Zcash is 0.0036-0.0041 sats. If that level breaks, 0.008 sats area should be the next level of defense for bears.

Therefore, privacy coins are starting to wake up, showing decent strength, but there may be more advantages, particularly in their BTC pairs, that can break your long downtrends. However, critical resistance levels must change to support. If this happens, privacy coins will be in a good position for your own “altseason”, which has been especially auspicious for the DeFi sector in recent months.

The views and opinions expressed here are solely those of the Author and do not necessarily reflect the views of Cointelegraph. Every investment and trade move involves risk. You should do your own research when making a decision.

Keep reading:

Source link