The FTX controversy has pulled the entire crypto market down, with top tokens struggling to stay afloat. Despite the bearish sentiment, PAX Gold (PAXG) has continued to trade in the green zone, keeping substantial intraday and one-week gain. The gold-backed crypto was trading at $1,762, a 2.17% intraday increase and a 5.80% week-on-week gain at press time.
However, trading activity on PAX Gold has decreased in the past 24 hours. Specifically, the gold price-pegged crypto saw trading volume down 16% in the 24 hours. At the same time, PAXG gained1.78% and 1.90 against BTC and ETH respectively. However, PAXG is positioned to retain its gains for quite some time.
PAX Gold Adds Over 2,600 New Wallets In The Last Six Months
Even though most cryptocurrencies have recently seen a downturn, Pax Gold has maintained consistent weekly and monthly growth. Furthermore, its network has experienced rapid growth during the past several months. In particular, over 2,600 additional wallet addresses have been introduced to the network during the previous three months. The numbers came from the cryptocurrency market statistics platform CoinMarketCap.
This was a considerable increase from May, when there were just 18,000 distinct wallet addresses on the PAX Gold ecosystem. It had around 13,000 unique addresses at the start of the year. As shown by the data, the gold-backed cryptocurrency saw growth of over 13% during that period.
PAXG’s price is currently trading above $17,50. | Source: PAXGUSD price chart from TradingView.com
What The Charts Say About PAX Gold
Although the short-term price action for PAX GOLD – PAXG/USD is corrective, the underlying trend is positive. The underlying trend remains unaffected for the time being; this is only a technical correction. Any reversal would be validated if prices dropped below $1,676.61, which served as support earlier. Then, the next support would be at $1,658.52, where selling would be encouraged. If the bears manage to get beyond it, they might aim for $1,618.80.
But as of writing, bullish momentum is still strong as the coin trades above $1,740. The subsequent targets for the bulls are $1,790.27 and, farther out, $1,804.42. The 1H chart for PAX GOLD/USD reveals a positive technical outlook. The bullish indications from moving averages make up 67.86% of all signals. This bullish trend may lose speed as short-term moving averages flash somewhat negative indications.
Neither the price nor any of the moving averages cross over each other or any of the other moving averages. Given the current trajectory of the technical indicators, additional price growth is likely but still needs to be determined.
What To Know About PAX Gold
PAX Gold is a bridge between crypto and gold, uniting the best features of both. Each PAXG token is backed by at least one troy ounce (t oz) of 400-ounce London Good Supply gold bar stored in Brinks Safety vaults in London. PAXG is pegged to the price of gold and backed by gold bars authorized by the London Bullion Market Association (LBMA).
Featured image from Pixabay and chart from TradingView.com