Crypto News: Is the Privacy Coin Rally Losing Momentum?

Key Takeaways:Privacy coins price slide as SCRT, ZEC, and DASH underperform the crypto marketRegulatory pressure increases risks for privacy-focused digital assetsBitcoin dominance at 59%, weighing on altcoin and privacy narrativesSource: CoinGeckoPrivacy Coins Reverse After November’s Strong OutperformancePrivacy coins recently showed strong bullish momentum, outperforming as Bitcoin price and major altcoins stalled. That trend has now reversed. Secret (SCRT) fell 4.4% in 24 hours, Dash (DASH) dropped 3.3%, and Zcash (ZEC) retraced sharply after a multi-month rally.The pullback coincides with a broader market slowdown, with the total crypto market down roughly 2.5%. Thin holiday liquidity has intensified selling pressure, particularly in smaller-cap assets. Regulatory Pressure Weighs On Privacy NarrativeRising regulatory scrutiny is a central theme across privacy coin news. In the U.S., the proposed SAFE Crypto Act increases oversight of crypto transactions, indirectly pressuring privacy-focused projects. In Europe, upcoming EU AML rules threaten features like Dash’s PrivateSend. Technical Weakness And Liquidation RiskFrom a technical perspective, conditions remain fragile. SCRT price is down 31.33% over 30 days and trades below key averages, with RSI at 34.83 and bearish MACD momentum. Low volume, down 63% in 24 hours, has worsened volatility.ZEC price suffered a sharp retracement after failing near a key Fibonacci level. Over $1.44 million in long liquidations occurred within 12 hours, reflecting overcrowded positioning. DASH price broke below $39.16 support, with RSI near 35, confirming a broader downtrend. Market Context: Bitcoin Dominance And Altcoin FatigueThe wider environment remains challenging for privacy assets. Bitcoin dominance at 59% and a Fear & Greed Index at 29 show defensive positioning across the crypto market. The Altcoin Season Index at 17 highlights capital rotation away from smaller tokens.Source: CoinMarketCapWhile privacy fundamentals remain intact, near-term flows favor Bitcoin amid high levels of macro uncertainty. Outlook: Can Privacy Coins Stabilize or Regain Lost Ground?The short-term privacy coin forecast depends on regulatory headlines, Bitcoin stability, and liquidity conditions. Key levels include $0.0968 for SCRT, $415 for ZEC, and $35.14 for DASH.