DASH, ZCASH, and Other Privacy Coins – Should you Invest?
Consider this: your crypto transaction history on a blockchain can be traced by regulators who need to know more about you, by obtaining details held within those addresses.
Privacy coins provide an added layer of confidentiality.
The so-called privacy coins use cryptographic techniques to block transaction details and protect the user from the prying eye. The unique role has helped privacy coins gain a name in the world of cryptocurrencies.
Let’s have a technical look at some of the privacy coins:
From the daily charts above, DASH and ZCASH have demonstrated a bearish momentum since hitting a record high around the first week of May. The decline reflects the broader rout in crypto markets since May.
DASH and ZCASH prices are now sitting on a support area, engulfed in a descending triangle. Both privacy coins formed a bullish pin bar and tried to surge higher on June 22. The prices traded down again, remaining below the trendline.
With the crypto sell-offs continuing, I expect a further drop in the price of both DASH and ZCASH.
Read DASH and ZEC long-term forecasts, written by FX Leaders analysts.
● DASH – A break below the 117.669 support would open more weaknesses of the digital token. Sell trades taken at this level should target 90.470 as the new support.
● ZCASH – A break below the support at 98.90 would leave 76.20 as the target for sell trades.
However, prices must remain contained within the bearish trendline in order for sell trades to hold.
What About the Future of Privacy Coins?
Just like other crypto tokens, DASH and ZCASH are impacted by regulatory rhetoric in digital currencies. Their future growth and potential depend on how the regulation unfolds.
However, privacy coins have another twist in the broader cryptocurrency industry. They attract greater regulatory attention due to their ability to conceal details of transactions.
Countries such as Japan and South Korea have subsequently banned coins that enable anonymity.
Nonetheless, there is a positive for the future of privacy coins.
In Q1 2021, DASH registered a 1.4% quarter-over-quarter jump in daily median transactions. The transactions rose by 35% year over year in the quarter, according to CEO Ryan Taylor.
Concluding Thoughts
Privacy tokens have a place and a unique role in the cryptocurrency industry. Users want to conduct their business in an environment of anonymity.
The limitation to the growth of privacy coins is regulation. The current regulatory environment is already more hostile towards privacy tokens than is the case with the broader cryptocurrency industry.
As the situation unfolds, l would recommend investors ride the current momentum and take trades along with the technical analysis.
No one knows the future for sure, but privacy coins should already be giving investors something to think about. Happy trading!
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By the way, pay attention to the new stablecoin Utopia USD that appeared in the UtopiaP2P ecosystem , which means that crypto transactions can become even more reliable. I advise you to check it out because the project itself guarantees data security, and now also with a more stable course.