What DASH’s short-term rally could mean for cryptocurrencies like Zcash

Bitcoin price movement around the $ 41,000 mark and larger market consolidation appears to have given way for altcoins to steal the show. At press time, after a fairly slow start to the week, some coins picked up the pace.

PINCH, the # 77 ranked token, posted a 24-hour gain of 8.38%. It was followed by AAVE, with just over 5% profit, while Zcash (ZEC) posted daily gains of 4.91%.

This was not the first time that privacy tokens recorded individual rallies, as the larger market seemed stagnant. In fact, also towards the end of November, ZEC outperformed major altcoins and even Bitcoin in terms of price gains, recording a 50% increase in price in just four days.

This time, it was DASH’s turn to lead the privacy token rally while ZEC followed closely behind.

Notably, DASH appreciated nearly 25% in three days, while ZEC posted double-digit daily gains on January 8 and was seen losing ground, at the time of writing. However, for DASH, about 41% of HODLers ran out of money. In fact, they were losing money at the $ 143.49 price level. By contrast, for ZEC, 50% were penniless at the $ 135.33 price level.

Losing money, gaining price?

Both DASH and Zcash featured a larger market decoupling. Especially since both posted gains, as the global market capitalization stood at $ 1.96 trillion, down 0.60% in the last 24 hours.

Interestingly, DASH’s correlation with BTC trended down as the price rose, reaching its lowest level since November.

For ZEC, however, the correlation with Bitcoin remains high. And, with ZEC losing ground on price, the same made sense. However, since the volatility of ZEC and DASH indicates lower values, the same is a good sign for their broader trajectories.

Despite the price increase, both privacy tokens have experienced low social volumes. This could be partly attributed to the ongoing debate over the use of privacy tokens for illicit purposes, as presented in a anterior Article.

Source: Sanbase

So the question here is: with the price seeming to catch up, what could it have in store for DASH and Zcash?

Whats Next?

DASH noticed a considerable increase in large transaction volumes along with price gains. This could be an indication that larger fish are re-entering the market.

ITB dash large transactions volume in usd 2022 01 09T09 29 51.384Z

Fuente: Into The Block

That said, for DASH, the HODLers still dominate the scene. Interestingly, both DASH and ZEC lack retail euphoria, which could be key for rallies in the future. While DASH saw a nearly 60% increase in daily trading volumes, ZEC appeared to be fighting for retail momentum.

Even so, for now, DASH is still 90% below its 2017 ATH of $ 1,542.20. It can be seen that an increase in the Sharpe ratio has paved the way for healthier gains.

However, it will be crucial for DASH to close the fair value gap of $ 150 to $ 227 before an uptrend towards its ATH can be seen.

DASH Sharpe Ratio 2022 01 09

Source: Messari

For ZEC, with the price rally weakening, the Sharpe ratio was also low, in negative territory at -2.76.

The recovery of the two tokens above their crucial resistances supported by a healthy rally in Sharpe’s ratios could indicate a reversal in the medium to short term.

This is a machine translation of our English version.

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What DASH’s short-term rally could mean for cryptocurrencies like Zcash

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