Recently, the privacy coin sector has experienced a broad rally, with ZEC and DOT performing particularly well. On-chain data shows clear signs of institutional activity—ZEC has surged 17% in 24 hours, now trading above $517.8, with the daily K-line steadily trending upward. DOT is also not to be outdone, approaching the $2 mark from $1.89, with ecosystem lock-up volume increasing by 20% within 24 hours.

The logic behind ZEC's rise is straightforward. The halving event reduced circulating supply by half, directly changing the supply and demand dynamics. More importantly, the privacy coin sector has become a key focus for institutional deployment. On-chain monitoring detected a whale address sweeping in 500 ZEC in a single transaction, which often indicates potential for further upward movement.

On the DOT side, the countdown to the zero Gas fee upgrade has significantly increased ecosystem participation, representing a substantial technical positive. The growth in ecosystem lock-up data reflects market optimism about the post-upgrade outlook.

From a technical perspective, ZEC's support level is at $500; breaking below this could imply increased downside risk. Resistance is at $530; a breakout above that would signal genuine strength. For DOT, holding above $1.72 is the baseline, and around $2 could be considered for partial profit-taking. However, it is important to keep position sizes between 5%-8% for both tokens and avoid over-leveraging due to short-term gains.