Zcash plummets amid correction in the privacy sector

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

Both Zcash and Dash, the best-performing privacy sector coins 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 sharp that less than two weeks ago its price exceeded $700 per token. This Monday, the price hit a local low of $325 per unit.

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

The collapse of the ZEC token 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 highlights that some large whales took profits in this coin, which was followed by the liquidation of retail investors.

Does the drop in Zcash price signify the end of the rally?

Although it wouldn't be unreasonable to think that the current collapse of the currency is the end of its 2025 rally, there are elements that could play in its favor. For example, it should be taken into account that not all the momentum of the currency is based on speculative factors. Organic elements are also deeply rooted in the philosophy of this token.

The rise of regulations raises concerns that the financial privacy of cryptocurrency users could be at stake. This leads to a significant increase in demand for privacy sector coins. Moreover, there are rumors that some sanctioned countries are trading with privacy coins to avoid tracking their operations on the blockchain.

These factors lead optimists to believe that the recovery of the currency will not take long. This implies that the current drop in the price of Zcash is a cheap buying opportunity. The narrative of recovery is reinforced by the fact that this is not the first time in recent weeks that this token has experienced a strong correction.

For example, on November 11, the coin fell from $650 to $440. Many even feared that the next stop would be $250. However, the token recovered above $700 afterwards. Although the current drop is much stronger, the precedent of recovery allows enthusiasts to maintain optimism for a new rally.