Crypto Privacy Coins Are Going Nuts: Will It Last?
Privacy coins are experiencing a major rally, with Monero surging 54% in a week and Dash posting a 39% single-day gain. The renewed demand stems from sector rotation after turmoil in Zcash, sparked by its development team’s resignation and a subsequent price crash. Regulatory actions, particularly the EU’s DAC8 mandate for tax reporting and Dubai’s outright ban on privacy coins, have intensified focus on privacy as a market narrative. Technical analysis shows Monero breaking out to new all-time highs with strong momentum, though its RSI of 85+ suggests short-term overbought conditions. Dash’s rally was largely driven by a derivatives short squeeze amid thin liquidity, with key resistance at $55–$60. While new partnerships and upcoming platform upgrades provide some fundamental support, most price action has been narrative and derivatives-driven. Persistent liquidity issues and regulatory headwinds make reversals possible if spot demand falters. Overall, Monero currently leads the privacy coin surge with convincing technical strength, while capital rotation keeps Dash and other alternatives in play pending continued sector interest.
