Privacy coin DASH has grabbed the spotlight in a turbulent crypto market, rallying even as the broader market sold off. It isn’t alone either – the entire privacy-coin sector is outperforming, signaling that investors are increasingly prioritizing transactional privacy and anonymity over other blockchain features.
DASH, an open-source blockchain and cryptocurrency, is taking the market by surprise as it is rallying, despite the whole market stagnating. Bitcoin, which was gaining value, hit resistance at $93,000 and has retraced to $92,000, while Ethereum hit $3,300, after which it crashed to $3,100.
Despite the two giants in the crypto market facing resistance and retracing, privacy coins like Monero (XMR), Zcash (ZEC), and Litecoin (LTC) have been performing well.
Investors value privacy and anonymity
The privacy coins alone, spiking amidst a dull market, show a market shift. This is not just momentary raw excitement that is there for a moment and then is gone, but it is the desperate search to find anonymity and privacy.
With regulatory scrutiny and surveillance on blockchains being pushed to their limits, investors are looking to go incognito. They want to obscure the transaction details to stop entities from monitoring their data. In other words, they are fighting to keep the decentralized ecosystem from being centralized.
With this tectonic shift, the privacy coin DASH hit $55 from as low as $38 in a matter of hours, as the traders saw the star coins like Bitcoin, Ethereum, and XRP stumbling amidst growing geopolitical tensions. As the investor did not see these well-established coins showing an upside, they started to invest in these privacy coins.
With this rise in interest, DASH, which was struggling below the 20-day moving average, all of a sudden shot past the 50-day ($40) and 200-day MAs ($43), two prominent resistance levels. When the coin crosses these two indicators, it indicates that the bullish momentum has taken over the short term and long term.
However, the relative strength index, a technical indicator, indicates that the DASH market is overbought. The RSI is deep in the overbought territory, showing that the coin has already reached its maximum price.
Judging by the technical indicators, there should be a correction coming. However, if the landscape remains the same, where scrutiny increases while the market stagnates, then more funds will be moving into privacy coins.
