Monero (XMR) captured the top spot on CoinMarketCap, dethroning Zcash after the latter’s team abandoned the project. With traders losing interest in Zcash and moving to XMR, the token reached a new all-time high.Â
Monero toppled Zcash, which was holding the top position among privacy coins on CoinMarketCap by market capitalization, after the Electric Coin Company team (ECC) resigned.
The ECC, which is the team behind Zcash, resigned from their position after Bootstrap, which is a 501(c)(3) nonprofit governing the ECC, reorganized it. The ECC claimed that after the reorganization, the positions held by the team were not in line with ZEC’s mission.Â
XMR gained more than 15% during the past 24 hours, while Zcash gained just 2%, showing a big difference in price appreciation. It gets worse for Zcash when the weekly time frame is compared. While XMR gained more than 33% during the past 7 days, ZEC lost almost 18%.
This divergence highlights a growing performance gap between the two largest privacy-focused cryptocurrencies, suggesting that capital has rotated decisively into Monero at Zcash’s expense. With funds flowing from ZEC into XMR, the token reached its all-time high of $596. However, XMR might not be able to stay up there for a long time.
XMR lies outside the usual fluctuation range
The reason? On the daily chart, XMR has crossed above the upper Bollinger Band, which is the upper limit for normal data distribution. Now that the current price of XMR is considered an outlier, or, in simple words, the price is out of the range of normal fluctuation, there is every chance that the market could correct the price.
When the market corrects XMR, the coin will once again fall within the range of the Bollinger Bands, where the upper band is at $532 and the lower band is at $373.
It could take any price within this limit, but there is a higher chance that it may fall to $453, as it is the average price of the Bollinger Bands or the SMA (the middle band). A slip from that level could crash XMR to $417.Â
