PAXG safe heaven assets

Market Outlook:

Something that has happened to the cryptocurrency prices the past couple of days is a decrease in the price, which could be explained by the global energy crises and a stricter monetary policy from the Federal Reserve (Fed). Another reason to this decline is the restrictions the cryptocurrency economy, which has made the trading of cryptocurrencies more worrisome for investors.

The global energy crises causes higher energy prices which causes a further causes disbelief in the Proof of Work the mechanism that for example both the Bitcoin and the Ethereum blockchain share, where it takes a lot of energy to power these blockchains. In extension are investors less likely to invest in a Proof of Work coin and therefore takes profits or sells these coins to make profits elsewhere. A structure Fed usually also leads to investors dumping high volatile assets such as crypto-currencies and tech company stocks. To invest in safe heaven asset such as Gold and Silver.

The Fed has now come out with plans on reducing the balance sheet and increased the interest rates, meaning that the ultra low interest rates from the Covid-19 pandemic were not justified. Something that has also been seen in conjunction with this is the United States supply chain issue has caused high inflation and to combat these two main issues is the Fed going to increase interest rates.

PAXG Analysis:

Position: Long

Entry price: 1856 USD

Target price 1: Hold the asset until the plausible recession is over


EMA 50/200: This is the Exponential Moving Average for 50 days and 200 days. The EMA 50 shows signals of a uptrend, which we have seen right now the past couple of days while the EMA 200 shows signals of long term stability.

RSI: The RSI line is at 62, and shows signs of being overbought, while the average is showing a smoother line at 59 and shows signals of being overbought. We can see in these lines that the overarching trend that the average is still having steam upwards while.

Keltner Channels: Keltner Channels measures volatility, and as of right now is PAXG in the upper channel signaling that upwards price movement

The EMA 50/200 is showing a upwards trend and the Keltner Channels are showing a similar price movement, where the price is moving upwards but if the price were to drop to the lower Keltner Channel would it only be a drop in 3%. We can also see that the RSI is overbought but the price movement is not stopping as the average RSI is still moving upwards and showing steam going forward.

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