Privacy coin season? Dash price is up 100% in a week as Monero and Zcash are bullish

The strength of the cryptocurrency market seems to be expanding into privacy-conscious coins. Bitcoin’s quiet price movement (BTC) often results in an intense rally time for altcoins, during which multiple groups of coins can become bullish.

One of these segments is privacy coins. For example, Monero (XMR) gained more than 50% last week. Meanwhile, Dash has more than doubled, up 125%, while Zcash (ZEC) grew 70% over the same period.

Monero breaks out of the USD downtrend

XMR / USD 1 week chart. Source: TradingView

Before the rally, XMR lagged behind Ether (ETH) as the construction is pretty similar between the two. After a two-year accumulation period, the ETH price finally broke up in early 2021.

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

XMR / BTC 1-week chart. Source: TradingView

However, the weekly chart for Monero’s BTC pair shows an entirely different view as it is still in a downtrend. Hence, a rally could be looming in the XMR / BTC pair. In particular, a break above 0.006 sats would likely add more upside.

Dash goes ahead

DASH / USD 1 week chart. Source: TradingView

When a coin begins to run out of one segment, other coins often follow. Such a correlation exists between Dogecoin (DOGE), Stellar’s Lumen (XLM) and XRP as these often reflect each other’s movements and the privacy coins are not different, namely XMR, Dash and ZEC.

Dash, for example, has also broken out of a two-year accumulation period. As long as Dash maintains support above the $ 150-170 region, another continuation towards $ 550- $ 600 is on the table.

DASH / BTC 1-week chart. Source: TradingView

However, the DASH / BTC pair also looks weak, much like XMR. A breakout above the critical resistance zone of 0.007 sats would help create upside momentum. If this level breaks and tilts in support, a continuation towards the 0.016-0.018 Sats region is likely.

Such a rally would also match the uptrend in the US dollar pair as the next level of resistance is between $ 550 and $ 600.

Zcash also shows strength

ZEC / USD 1 week chart. Source: TradingView

Zcash is the third major privacy coin and it also has a similar chart structure. ZEC’s price broke out of a long multi-year accumulation period and flipped the $ 80 area for support.

With that S / R flip, the price then rose to $ 160-170, the next area of ​​resistance. As long as Zcash is above the $ 100-120 range, the $ 350-380 resistance zone becomes the next logical target.

ZEC / BTC 1-week chart. Source: TradingView

But just like the other privacy coins, the BTC couple is still struggling to break out. The critical level for Zcash is between 0.0036 and 0.0041 sats. If this level is not reached, the saturated area of ​​0.008 should be the next level of defense for the bears.

Hence, privacy coins are starting to wake up and show decent strength, but more upside is possible, especially with their BTC pairs who can break out of their long downtrends. However, the critical resistance levels need to turn around to support them. In this case, privacy coins are in a good position for their own “old season”, which has been particularly beneficial for the decentralized financial sector in recent months.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading step is associated with risks. You should do your own research when making a decision.

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