The bullish trend of the cryptocurrency market also captured the segment of private coins. Often, when one asset in a group begins to grow, others follow. This was the case, for example, with DOGE, XLM and XRP, which show a high correlation of rates. Over the past week, privacy-oriented cryptocurrencies have shown strength. Monero (XMR), for example, gained 50%, Dash (DASH) more than doubled in value, and Zcash (ZEC) gained 70%. Analyst Michael van de Poppe spoke about the prospects for such assets.
XMR
Until the last rally, XMR lagged behind ETH, but both have a similar structure on the charts. After two years of amassing, ETH made a breakthrough in early 2021. These breakouts usually end up converting previous resistances into support. The XMR support / resistance zone is highlighted in green on the chart above. This support was successfully tested, and from it the XMR moved to the next resistance near $ 300.
On the weekly chart with Bitcoin, a completely different picture emerges – the downtrend remains there. However, an uptrend is likely to emerge in the XMR / BTC pair, for confirmation of which it is important to overcome the resistance of 0.006 BTC.
DASH
DASH also emerged from a two-year accumulation channel. If the support remains at $ 150-170, it is likely that the rise to $ 550-600 will continue.
The DASH / BTC pair, as in the XMR scenario, is still showing weakness. A breakdown of the critical resistance of 0.007 BTC will help the upward momentum. If resistance turns into support, the rise to the level of 0.016-0.018 BTC is possible.
ZEC
The ZEC is the third largest private coin with a similar structure on the chart. It exited the multi-year channel, turning the $ 80 resistance into support, and then headed towards the $ 160-170 resistance. Keeping support at $ 100-120 makes the next logical level $ 350-380.
The ZEC / BTC pair also looks unattractive so far, and to change the situation, you need to take the level of 0.0036-0.0041 BTC, after which there will be a chance to move to 0.008 BTC.
“Thus, private coins are starting to wake up showing significant strength, but further gains are still possible, especially in pairs with BTC, where a long-term downtrend may be disrupted. For this, critical resistance levels must turn into support. If this happens, private coins will be in a good position for their own ‘altcoin season’, which has been particularly noticeable in the DeFi sector over the past months, ”the analyst concludes.
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