Zcash price plummets amid privacy sector correction

Source: CritpoTendencia Original Title: Zcash Price Plummets Amid Privacy Sector Correction Original Link: This Monday, the broader cryptocurrency market is experiencing a disastrous shake-up for investors, especially those who bought in betting on a bigger recovery. Among the main ones affected is the privacy coin sector, with the price of tokens like Zcash losing much of their recent gains.

Both Zcash and Dash, the best-performing coins in the privacy sector in October and November, are now losing most of those gains. In the case of ZEC, the situation is particularly striking. The drop has been so steep that less than two weeks ago its price was above [image] per token. This Monday, the price hit a local low of ( per unit.

At the time of writing, the largest privacy token by market capitalization is showing a -19% performance in 24 hours. Meanwhile, on the one-week chart, the performance is -36.3%. The price of Zcash is bouncing back to around $360, but a further drop cannot be ruled out, considering the strong selling pressure in the market.

The ZEC token’s plunge has caused its market capitalization to fall to $5.85 billion. This is a drop from $7.2 billion in 24 hours. A week ago, it was around $10 billion. This makes it clear that some large whales took profits in this coin, which was then followed by retail liquidations.

![La capitalización de Zcash experimenta una enorme caída durante la última semana.])https://img-cdn.gateio.im/webp-social/moments-9f7bcbbbde-68eb52cd9c-153d09-6d5686.webp$700

Does Zcash’s Price Drop Signal the End of the Rally?

While it wouldn’t be far-fetched to think that the current crash of the coin marks the end of its 2025 rally, there are elements that could work in its favor. For example, it’s important to note that not all of the coin’s momentum is based on speculative factors. Organic elements are also deeply rooted in the philosophy of this token.

The rise of regulations has sparked fears that the financial privacy of cryptocurrency users could be at risk. This is causing significant growth in demand for privacy sector coins. Additionally, there are rumors that some sanctioned countries are trading with privacy coins to avoid having their operations tracked on the blockchain.

These factors allow optimists to believe that the coin’s recovery won’t take long. This implies that the current drop in Zcash’s price is a cheap buying opportunity. The recovery narrative is reinforced by the fact that this isn’t the first time in recent weeks that this token has suffered a sharp correction.

For example, on November 11, the coin fell from $325 to $440. Many even feared that the next stop would be $250. However, the token subsequently recovered above (. Although the current drop is much steeper, the precedent of recovery allows enthusiasts to remain optimistic for a new rally.