Consider this: The history of your crypto transactions on a blockchain can be traced by regulators who need to know more about you, by obtaining the details contained in these addresses.
Privacy pieces provide an extra layer of privacy.
So-called privacy coins use cryptographic techniques to block transaction details and protect the user from prying eyes. This unique role has helped privacy coins make a name for themselves in the cryptocurrency world.
Let’s take a technical look at some of the privacy pieces:
DASH / USD
Analysis of daily DASH charts
ZEC / USD
ZCASH daily chart analysis
From the daily charts above, DASH and ZCASH have shown bearish momentum since reaching an all-time high around the first week of May. The decline reflects the broader rout in the crypto markets since May.
DASH and ZCASH prices are now sitting on a support area, engulfed in a descending triangle. The two privacy coins formed a bullish pinbar and attempted to soar on June 22. Prices fell again, staying below the trendline.
With continued crypto sales, I expect the price of DASH and ZCASH to drop again.
● HYPHEN – A break below 117.669 support would open more weaknesses in the digital token. Sell trades taken at this level should target 90.470 as new support.
● ZCASH – A break below support at 98.90 would leave 76.20 as a target for sell trades.
However, prices need to stay contained within the downtrend line for sell transactions to hold.
What about the future of privacy coins?
However, privacy coins have another twist in the broader cryptocurrency industry. They are attracting more regulatory attention due to their ability to conceal transaction details.
Countries like Japan and South Korea subsequently banned coins allowing anonymity.
Still, there is a bright spot for the future of privacy coins.
In the first quarter of 2021, DASH saw a 1.4% quarter-over-quarter increase in median daily trades. Transactions grew 35% year-on-year in quarter, CEO says Ryan taylor.
Privacy tokens have a unique place and role in the cryptocurrency industry. Users wish to carry out their activities in an environment of anonymity.
The limitation to the growth of privacy coins is regulation. The current regulatory environment is already more hostile to privacy tokens than is the case with the broader cryptocurrency industry.
As the situation evolves, I would recommend investors to take advantage of the current momentum and take trades with technical analysis.
No one knows the future for sure, but the privacy coins should already give investors something to think about. Have a good negotiation!