Despite many cryptocurrencies hitting record highs this year, the overall market trend was not overwhelmingly optimistic. A few stood out positively. Gold experienced its best year since 1979 with a 64% gain, whereas Bitcoin saw a downturn in the last quarter. But which altcoins remained resilient while this contrast unfolded?
Privacy Altcoins
Cryptocurrency regulations have been crucial for sector growth, yet, they have also increased the appeal of privacy-focused altcoins. Investors looking to keep their assets shielded from prying eyes have turned to privacy coins, which preserve the original intent of cryptocurrency as an alternative to the traditional financial system. While the current trend leans towards integrating cryptocurrencies with the conventional finance system, privacy altcoins remain an exception.
Despite restrictions from the European Union, privacy coins cater to those wishing to keep their wealth safely within the crypto space. This demand is perhaps why privacy altcoins have seen accelerated gains as the year nears its end.
Zcash (ZEC)
At the forefront is ZEC, which surged by over 840% following an update driven by excitement and support from figures like Vitalik Buterin, peaking at over $700. Analysts suggest a near-term breakthrough of the $1,000 psychological threshold could be on the horizon.
Starting its rise at $70, ZEC paused at $311 but maintained support at $514. Aiming for $565 and $676 in January remains plausible if the main support at $422 holds firm. The ability of privacy coins to gain from year-end tax motivations will be tested in January, but without sharp declines, four-digit prices remain within reach.
XMR Coin
Monero (XMR), up by over 125% this year, outperformed many major altcoins which returned to previous lows. As one of the most established privacy altcoins, it achieved higher lows despite market instability. Should closures above $433 persist, XMR is targeting its 2021 peak of $519, potentially advancing towards four-digit prices like ZEC.
