The cryptocurrency market is experiencing notable turbulence this November, with both Bitcoin and Ethereum seeing declines. In contrast, a specific segment of the market, privacy coins, has demonstrated resilience during this downturn.
The recent introduction of Kohaku, a privacy feature on the Ethereum network, has reignited interest in cryptocurrencies that prioritize user privacy. Investors are increasingly turning to privacy-focused assets as they seek stronger on-chain privacy solutions amid market fluctuations.
Three prominent privacy coins to watch closely are Monero (XMR), Zcash (ZEC), and Dash (DASH). Each of these coins has unique features that cater to the demand for enhanced privacy in transactions.
Monero: The Benchmark for Privacy
Monero remains a leading privacy coin, providing complete anonymity for users by concealing the sender, recipient, and transaction amount. Unlike Kohaku”s opt-in privacy model, Monero operates on a fully private basis, making it a benchmark within the privacy coin sector.
Over the past three months, Monero has gained approximately 50.1%. It has been trading within a rising wedge pattern since August 1, with attempts to breach the upper trend line proving unsuccessful. A breakout above the $425 mark would signal significant strength, while a move above $477 could initiate a larger rally. Maintaining a price above $367 is crucial for buyer confidence, with a slip below this threshold potentially leading to a drop to $304.
Zcash: A Strong Performer with zk-SNARKs
Zcash utilizes zk-SNARKs, allowing users the option between transparent and shielded transactions. This functionality aligns closely with Ethereum”s new privacy initiative, offering a similar “opt-in privacy” mechanism.
In just three months, Zcash”s value has surged nearly 1500%, marking it as one of the most impressive performers in the crypto market. However, the price has recently stabilized after reaching $748, requiring a candle close above this level to maintain momentum. Support remains strong above the $585 to $623 range, while a drop below $498 could shift the short-term trend to bearish.
Dash: The Trader”s Choice
Dash may not offer the same level of privacy as Monero or Zcash, employing a mixer-style approach known as PrivateSend. Despite this, it remains a popular choice among traders, especially during this market downturn, with a remarkable gain of over 244% in the last three months.
The price chart for Dash shows a healthy trend, with a formation of higher lows that suggests waning selling pressure. To sustain the upward trajectory, Dash must close above $87, while a breakout above $103 could signal a strong continuation of the rally. However, dropping below the $61.38 level would indicate a weakening of the current price structure.
As the cryptocurrency landscape evolves, privacy coins like Monero, Zcash, and Dash are becoming increasingly relevant. Their ability to withstand market pressures while addressing privacy concerns positions them as significant assets in a turbulent environment.
