Crypto: Zcash Falters, Monero Takes Advantage to Reach a Peak
The crypto market is making headlines again. The Monero (XMR) token is drawing particular attention by surpassing the symbolic $500 mark, a level not reached since 2021. Meanwhile, Zcash (ZEC) is sinking into a governance crisis that destabilizes its market and alarms investors.
In brief
- The crypto Monero surpasses $500 and establishes itself as the big winner in the privacy coins market.
- Zcash collapses following an internal crisis, triggering a massive transfer of crypto investors to Monero.
Crypto Monero surfs on the Zcash crisis
The Monero token has jumped over 20% in a week, reaching $500.66 before stabilizing. This spectacular rebound is explained by the massive exodus of crypto traders leaving Zcash, shaken by a collective resignation within the Electric Coin Company. This is the team responsible for the development of the crypto project.
Added to this are tensions around the Bootstrap Project as well as poor fund management. These caused the plunge of ZEC, which lost over 20% to fall to $360.
Crypto investors now seem to prefer Monero, considered more stable and more consistent in its roadmap. Several institutional reports (notably from Grayscale and Coinbase) also highlight the potential of privacy coins.
Technical analysis: a resistance wall at $520 in the crypto market
Despite its surge, crypto Monero faces historic resistance between $500 and $520. Technical analysis shows that every attempt to surpass this threshold since 2021 has resulted in a violent correction, sometimes from 40% up to 95%. The chart patterns suggest that a rejection could bring the price of XMR down to the $200–$270 zone.
But if the token manages to hold above $520, a new upward phase would open. In this case, Monero could target $775 (according to Fibonacci retracements). Such a performance would place the crypto back in the race of the best-performing assets of the year.
Experts believe that a confirmed breakthrough would even make Monero the most credible crypto blockchain in the privacy segment, especially after the debacle of Zcash.
In any case, the crypto market confirms its taste for spectacular reversals. It remains to be seen whether this breakout above $500 signals a real bullish cycle or just a volatility phase for Monero.
Maximize your Cointribune experience with our "Read to Earn" program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
My name is Ariela, and I am 31 years old. I have been working in the field of web writing for 7 years now. I only discovered trading and cryptocurrency a few years ago, but it is a universe that greatly interests me. The topics covered on the platform allow me to learn more. A singer in my spare time, I also cultivate a great passion for music and reading (and animals!)
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.