The privacy coins DASH and ZEC are on the rise in a market downturn.
After a rather slow start to the new year, Bitcoin price continues to fall and is trading around $ 41,000, along with the consolidation of the broader crypto market, a number of altcoins have boomed quite impressively.
The token ranked 72nd in terms of capitalization, DASH grew 8.38% in 24 hours. Next came AAVE, up just over 5%, while Zcash (ZEC) was up 4.91%.
DASH / USDT. Source: TradingView
This isn’t the first time privacy-conscious tokens have started individual rallies as the broader market appears to be stagnating. In late November, ZEC also outperformed leading altcoins and even bitcoin, gaining more than 50% in just four days.
This time it was DASH’s turn to lead the privacy token rally and ZEC followed closely.
Notably, DASH is up nearly 25% in three days, while ZEC posted double-digit daily gains on Jan 8, but lost momentum at press time. However, at DASH, about 41% of holders are said to lose money at $ 143.49 while 50% of ZEC holders are said to lose money at $ 135.33.
Lose money, win a prize?
Both DASH and ZEC represent a departure from the broader market, especially as both posted gains as total market capitalization fell 0.6% in 24 hours to $ 1.96k billion.
Interestingly, the correlation between DASH and Bitcoin tends to decline as the price rises, reaching its lowest level since November.
Source: In the Block
For ZEC, however, the correlation with Bitcoin remains high. And as the ZEC is losing momentum, this also plays a role. However, since volatility is recording lower values for both ZEC and DASH, this is a good sign of their larger trajectories.
Despite the price hikes, both DASH and ZEC have low social volume, part of which stems from the ongoing debate about using privacy tokens for illegal purposes.
DASH saw a significant spike in large volumes of trade along with a surge in price, which is a sign that whales will return to the market.
Source: In the Block
At the moment DASH owners still dominate. Oddly enough, both DASH and ZEC lack the retail euphoria that is key to future rallies. While DASH saw its daily trading volume grow nearly 60%, ZEC appears to be struggling to stimulate retail demand.
Even so, the DASH price is still roughly 90% below its ATH of $ 1,542 in 2017 for now. A rising Sharpe ratio can be seen as a harbinger of healthier rallies.
However, it is important for DASH to close the fair value gap from $ 150 to $ 227 before seeing a rally towards ATH.
For ZEC the price recovery trend is weakening, Sharpe ratio is also low, in the negative area at -2.76.
DASH and ZEC rebound above key resistance levels, aided by a healthy surge in the Sharpe ratio, which may indicate a near-term reversal.
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