The end of the 40-day US government shutdown is shining a spotlight on several altcoins. Zcash (ZEC), Virtuals Protocol (VIRTUAL), and Soon (SOON) posted massive gains. Market analysts are evaluating if these altcoins with bullish momentum can maintain their streak now that macroeconomic uncertainty appears to be dissipating.
Zcash (ZEC) was the standout performer, with a striking 756% increase during the period. It currently trades at $634. Meanwhile, Virtuals Protocol (VIRTUAL) gained 101% since late October. Likewise, SOON showed remarkable strength with a 462% rise since October 1, trading at $2.12.
These gains occurred while the macro financial markets remained bearish. ZEC’s impulse is attributed to the strengthened narrative of privacy coins. Interest in VIRTUAL is linked to the boom in AI-powered crypto projects. SOON, on the other hand, leverages its SVM (Solana Virtual Machine) Rollup technology to drive cross-chain adoption on the blockchain.
Can these tokens sustain the rally, or is a correction imminent?
Despite the optimism, technical indicators suggest caution. For ZEC, the Chaikin Money Flow (CMF) indicator is in the saturation zone above 0.20. This suggests potential profit-taking. A drop below $600 could invalidate the bullish outlook and seek support at $478 or $400. VIRTUAL is approaching a technical “Golden Cross”, which could propel it to $2.00. However, if it loses the $1.37 support, it could fall to $1.14.
SOON maintains an uptrend signal according to the Parabolic SAR. Holding the key $2.03 support level is vital for its $3.00 target. If selling pressure increases, the price could drop to $1.39. Investors are closely monitoring these altcoins with bullish momentum. The end of the government shutdown will define if risk capital flows back into these assets or if current holders will take profits after the sharp rallies.
