Morning Crypto Update: Bitcoin Faces Uncertainty as Zcash Soars Again, XRP Approaches $0, and Monero Sets Up for Potential Upsurge

As 2026 approaches, the cryptocurrency market appears stable overall, yet underlying tensions remain evident. Bitcoin is holding its position, but Zcash is experiencing a significant surge, a development often seen as a warning sign for Bitcoin. Meanwhile, XRP shows signs of market exhaustion, while Monero has potential for a significant breakout if key resistance levels are crossed.

Key Takeaways

Zcash (ZEC) is witnessing a notable surge, often indicating potential challenges for Bitcoin.
XRP has shown a strange pattern with a drop to $0 on shorts, suggesting market exhaustion.
Monero (XMR) may be poised for a significant upswing if it confirms a breakout pattern reminiscent of past silver rallies.
Market rotations toward privacy coins are gaining traction, especially in Asia and Eastern Europe.

As we near the end of the year, the cryptocurrency landscape presents a mix of stability and hidden unpredictability. Bitcoin remains steady, but Zcash is back in a strong upward trend, prompting analysts from CryptoQuant to flag this as a potential risk for Bitcoin. Interestingly, XRP has just reported a unique statistic: its liquidation data shows a stark $0 for short positions within a one-hour window, while the total for 24 hours approaches $2.63 million. During this period, Monero is gaining attention with its "cup-and-handle" formation and a possible upside target of "80% silver-style" if it breaks out convincingly.

Zcash's latest uptrend is hard to overlook, skyrocketing from around $460 to $520 within hours, reflecting the last-minute rush typical in Bitcoin rallies when traders start seeking faster profits elsewhere. Analyst Maartunn remarks that when Zcash starts to make its own moves, Bitcoin has a history of taking a downturn or cooling off.

Zcash Pumping Again Source: CoinGlass

This situation is not coincidental; rather, it is a behavioral pattern. Privacy coins like Zcash often surge during periods of market volatility, as evidenced by the declining Bitcoin charts amid an uptick in Zcash activity. This trend mirrored previous scenarios in early 2021 and mid-2022, where Bitcoin faced weeks of stagnant trading instead of a smooth upward trend.

Moreover, derivative activities reflect a similar trend, with Bitcoin perpetual contracts suggesting a lack of aggressive trading while ZEC interest is on the rise, indicating that traders are taking leveraged positions. Such moves, while potentially profitable, often leave Bitcoin short on momentum in the aftermath.

On the contrary, XRP exemplifies market fatigue. Recent liquidations highlighted on CoinGlass displayed an extraordinary situation: over $20,000 in long positions were eliminated with no short positions impacted at all. The 24-hour stats reflected a total of $2.63 million in liquidations, with negligible short positions, indicating an overall sell-off pressure without counterweight. The TradingView graph illustrates XRP's decline from $1.90 to $1.87, maintaining a consistent slide without the typical spikes associated with short squeezes.

This pattern reflects a broader trend after significant bullish confidence, where traders preemptively exit short positions to avoid costs, causing a lack of market balance. As a result, XRP's price might drift down until a fresh catalyst emerges, though momentum players could struggle during the upcoming holiday period.

Meanwhile, Monero's market narrative is considerably different. Capo of Crypto has pointed out that Monero might be on the verge of a significant breakout, forming a lengthy cup-and-handle pattern not seen for years. He draws parallels to previous silver and gold market behaviors before their substantial rallies earlier in the year.

Monero’s performance revolves around a resistance zone between $417 and $620 that has consistently capped its advances since 2017. Currently, this "handle" appears tighter, suggesting bullish momentum is brewing. Should Monero’s price successfully clear the 2021 ceiling and hold above approximately $650, projections suggest it could surge towards $1,000-$1,100, validating the “80% upside” notion.

Interestingly, as investment flows into privacy coins are ramping up in regions like Asia and Eastern Europe, Monero appears to be favorably positioned for continued accumulation rather than being driven by automated trading.

With Bitcoin hovering around the $90,000 mark, if capital begins shifting towards lagging assets with compelling narratives like Monero, it could emerge as a focal point. The heatmap indicates that while Monero is heating up, it’s not yet reached the boiling point, suggesting there’s still potential for upward movement.

At this juncture, market indicators are mixed, reflecting neither a clear bullish nor bearish outlook. Bitcoin continues to influence the broader sentiment, but Zcash’s activity could pose threats reminiscent of previous Bitcoin peaks. The next few sessions in early 2026 will be crucial in determining whether this is merely year-end rotation or the beginning of a significant mini-rally for privacy coins while maintaining Bitcoin's sideways trajectory.

Morning Crypto Update: Bitcoin Faces Uncertainty as Zcash Soars Again, XRP Approaches $0, and Monero Sets Up for Potential Upsurge