Privacy coins are showing signs of divergence. Zcash fell 5% in the past 24 hours and has dropped 16% in the past week, with its price falling to around $506 and testing support around the 200-day moving average. Previously, the coin had surged over 100% last month, reaching a price close to $650.
Zcash gave back its gains from last month.
This pullback occurred after a rapid rise. Zcash's earlier surge was quite rapid, accumulating significant gains in a short period, but it has recently entered a period of adjustment. The market is now observing whether a new support zone can form around $500.
Judging from the current trend, the 200-day moving average has become a key level to watch in the short term. If the price continues to stay around this level, it indicates that the previous gains are being digested again; if it falls below this level, it means that the strong rally of last month has cooled down further.
Monero rose due to large buy orders.
Unlike Zcash, Monero rose nearly 15% during the same period. The report mentioned that this surge was related to a buy of approximately $23 million, with the on-chain activity believed to have originated from an unusual transfer following a Coinbase withdrawal.
This fund flow has attracted market attention due to its large size and the fact that it occurred amidst increased volatility in the privacy coin sector. The concentrated influx of funds into Monero has also led to its significantly stronger short-term performance compared to Zcash.
- Zcash 24-hour decline: 5%
- Zcash's decline over the past 7 days: 16%
- Monero's increase: close to 15%
Sentiment towards privacy coins is diverging.
The divergence in the price movements of the two major privacy coins reflects a lack of consensus in market sentiment. Zcash is facing downward pressure after its previous surge, while Monero is receiving additional support due to large-scale buying.
Going forward, the market will continue to focus on whether Zcash can hold above $500 and whether Monero can continue its current upward trend driven by large-scale buying.
