Technicals offer a mixed outlook and profit-taking could derail buyers.
Railgun (RAIL) price surged over 45% in 24 hours to top the $3.20 mark as top privacy coins soared, with Dash going vertical and Monero breaking to $700. Zcash also spiked, as did Pirate Chain, Decred, Oasis and Verge.
The surge for these coins comes despite the negative news of Dubai’s ban on privacy coins, pointing to a resurgence for the sector. Investors looking to rotate into outperforming altcoins see the censorship-resistance tokens as worth a bet.
Notably, Bitcoin and Ethereum have tailed off in the past two days as global risk assets falter on macroeconomic and geopolitical tensions, including the unfolding political situation in Iran.
Privacy coins are back into the limelight as Bitcoin and Ethereum, and other top altcoins consolidate. Tokens native to several privacy-focused protocols have exploded in the past 24 hours, with Dash surging to outpace the sector.
Railgun, the zero-knowledge protocol designed to support private transactions for decentralized finance, has emerged as another top gainer.
The protocol has previously received backing from Ethereum founder Vitalik Buterin, and its offering is critical to DeFi.
The RAIL token was up more than 45% at the time of writing, touching highs of $3.20 amid a 176% spike in trading volume. Per CoinMarketCap, bulls elevated the daily volume to over $3.75 million as the price jumped to the intraday high.
The technical picture for the token signals likely upward continuation.
While key indicators paint a mixed outlook, the surge to $3.20 puts bulls in control.
That’s the outlook on the 4-hour chart, with the relative strength index in the overbought territory to suggest potential profit taking. Bears showed this as prices touched higher points on some exchanges before recoiling to lows just above $3.00.
However, RAIL is also sporting a moving average convergence divergence, painting a strengthening histogram. The MACD recently indicated a bullish crossover.
For buyers, the breakout above $2.27 and $2.91 is key.
While price may yet see a pullback as noted above, a continuation may result in a fresh push to above $4.00. A close above the level will encourage bulls, with key targets being $5.50 and the all-time high of $8.37 reached in November 2021.
