Zcash lost 10.5% in a day and fell below $1,100. Monero is falling along with it: down 9.2% for the day. Figures as of 19:01 Moscow time on November 10.
What these coins are. Zcash and Monero are cryptocurrencies with private transfers. Amounts and addresses in their networks are hidden. In Bitcoin, by contrast, every transaction is visible in a public ledger.
Why this matters to a trader. Bitcoin and Ethereum are also in the red, but declining noticeably less. Money is exiting specifically the privacy sector, and it was the most overheated in the fall.
Where did the decline come from?
In the fall this group was the leader of the crypto market. Now the market is giving back part of that growth: to reach the September level, the coin needs to recover almost a third of its price.
- 150% in a week. That's how much ZEC gained at its peak during the fall move.
- Passing $700. The coin broke through this level during the rally.
- Consolidation above $1,600. This happened after 21Shares launched an exchange-traded product on Zcash in Europe.
An exchange-traded product is a fund that is bought on an exchange like an ordinary stock.
Is the sector falling or all of crypto?
The sector is falling. The decline is happening simultaneously in ZEC and XMR, the two main privacy coins. BTC and ETH are behaving more calmly.
- 10.5% - daily loss in ZEC
- 9.2% - daily loss in XMR
- 31.5% - gap from the September level above $1,600
What does this mean for a trader?
Amplitude works in both directions. An instrument that gives 150% in a week just as easily takes away 10% in a day - and back again.
Such amplitude changes the calculation of position size and stop-loss. A size that is usual for BTC here produces a loss many times larger.
Key point: the nearest point of attention is whether ZEC holds the $1,100 area. This is a round level that it has just lost.
If you work with this kind of volatility, it's worth choosing a challenge for your market and style in advance.
Did you short privacy coins today?
Moves of 10% per day are exactly the amplitude that many come to alts for. With a prop firm account, a second question is added: are ZEC and XMR even on the list of available instruments. Some crypto programs are limited to BTC and ETH pairs. Somewhere the maximum volume on volatile alts is cut, somewhere holding a position over the weekend is prohibited. These points are looked at in the rules, not in the tariff description. The calculator selects programs by the market and style you actually work with.