- Monero has risen more than 23% in the past week, contrasting with a similar decline in ZCash.
- The overall privacy coin sector fell nearly 40% during the same period.
- Market experts attribute the price divergence to trading strategies like positioning and leverage instead of changes in privacy demand.
- Monero’s surge is primarily linked to futures market activity rather than spot market buying.
Privacy-focused cryptocurrency Monero increased by over 23% in the last week, reaching around $406, while fellow privacy coin Zcash dropped approximately 25% to near $480, according to CoinGecko data. This shift occurred amid a generally quiet cryptocurrency market during the Thanksgiving period.
The privacy coin sector overall declined about 40% during the same timeframe. Experts explain that this difference in performance results mostly from capital rotation within the sector rather than a fundamental change in user interest for privacy technology. Quinten van Welzen, head of strategy and communications at Zano, stated that “short-term moves like Monero being up while Zcash is down mostly reflect positioning, leverage, and timing rather than a reversal in the underlying demand for privacy.”
Data analysis reveals that Monero’s price increase was mainly driven by futures markets. The aggregate spot bid-ask delta showed consistent selling pressure, while perpetual futures bid-ask delta remained positive. This difference is supported by cumulative volume deltas (CVD), which measure the total difference between bid and ask volumes. Spot CVD stayed steady, whereas futures CVD trended upward, according to CoinGlass.
Additionally, rising open interest — the total number of open positions in futures contracts — confirms that speculative futures trading led Monero’s recent price move, not buying activity in the spot market. This pattern indicates the rally is potentially fragile, as futures-led rallies can retreat if positions are unwound, potentially leading to profit flows into other major privacy coins like Zcash and Dash.
In summary, Monero’s strong performance in an otherwise declining privacy coin market is linked to futures trading speculation rather than a broad resurgence in privacy coin demand.
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