The privacy coin sector has shown divergence. Zcash fell 5% over the past 24 hours and has declined 16% over the past week, with its price dropping to around $506 and testing support near the 200-day moving average. Previously, the coin surged over 100% last month, reaching nearly $650.
Zcash gives back last month's gains
This pullback follows a rapid rally. Zcash experienced a sharp upward move earlier, accumulating significant gains in a short period, and has recently entered a consolidation phase as the market observes whether a new support zone can form around $500.
From the current trend, the 200-day moving average has become a key short-term level to watch. If the price remains near this level, it suggests that earlier gains are being reabsorbed; if it breaks below, it signals a further cooling of last month’s strong momentum.
Monero rose on strong buying pressure.
Unlike Zcash, Monero rose nearly 15% during the same period. The report noted that this rally was linked to a purchase of approximately $23 million, with on-chain activity believed to stem from an unusual transfer following a withdrawal from Coinbase.
This fund movement has drawn market attention due to its large scale and its occurrence amid increased volatility across the privacy coin sector. The concentration of funds into Monero has also led to its short-term performance significantly outpacing that of Zcash.
- Zcash 24-hour decline: 5%
- Zcash's 7-day price decline: 16%
- Monero gain: nearly 15%
Privacy coin sentiment has diverged
The diverging trends of the two major privacy coins reflect inconsistent market sentiment. Zcash is facing selling pressure after its earlier surge, while Monero has received additional support from large buy orders.
Next, the market will continue to monitor whether Zcash can hold around $500 and whether Monero can sustain its current upward momentum driven by large buy orders.