To clarify the controversies around its stance on Bitcoin and other cryptocurrencies, the Indian government has affirmed that it does not consider any digital assets illegal. The Indian authorities clarified that since the crypto sphere is a grey area, they will be taking a careful and gradual approach to the sphere. visit website
Following this new development from the Indian government, WRX, the native token of the WazirX exchange has benefited greatly as its market price surged considerably.
India tax news prompts WRX’s market price to surge.
The price of Ward surged considerably, reaching up to 30% reaching a three-week all-time high of $1 just after the announcement from the Indian government. The Indian authorities have now made their plans clear as they reverse their previous decision on cryptocurrency. Earlier in the year, the Indian government took a strong stance against crypto and even contemplated a blanket ban on the growing industry.
Nirmala Sitharaman, the Finance Minister of the country on Tuesday asserted that the government now plans to tax crypto traders on every income earned via crypto trading. The tax percentage is set around 30% which makes it one of the highest crypto tax rates across the globe. However, this also means that India is now beginning to recognize digital assets in its economy which will ultimately increase its adoption in the country.
Immediately after the speech from Sitharaman the price of WRX surged significantly. This surge can be linked to WRX being the native token of WazirX, a crypto exchange based in India. WRX functions as a utility token on the WazirX platform offering several benefits to users holding it. These benefits include access to the latest airdrops and discounted trading few on the exchange platform.
The Next 250% Price Surge Ahead?
Generally, utility tokens earn their value from predictions that their acceptance and adoption would grow alongside their platform.
An independent market analyst known as Javon Marks has forecasted a boom in proving in the WRX market, stating that the token could reach $3.80. At the core of his analysis, Marks displayed a well-illustrated chart to back up his claim.
Explaining in detail, Marks affirmed that the current surge in price experienced by WRX has caused its price to break over the multi-month downward trendline resistance. He noted that this break above the trendline perfectly positions the time to surge by another 250% in the coming months. Marks believes if that happens the token will go to reach its resistance price mark of April 2021.
He went on to claim via a tweet that if the token can hold onto the break above the trendline resistance, the target will remain feasible.
This bullish news about WRX surfaced at a time when the crypto market as a whole is in a bearish trend since the poor performance in January. WRX wasn’t an exception either as it initially dipped over 30% in January, following the general market and that of Bitcoin. Bitcoin at that time witnessed a dip of more than 18%.
The Possible Pullback Scenario
While it’s presently bullish for WRX, its daily correlation with the larger trend of the crypto market puts the token at significant bearish risk. This is because the fundamentals that initially dipped the token — the hawkish turn of the U.S Federal Reserves —in January of 2022 still remain active.
In addition to this, the price of WRX faces a confluence of technical resistance that might still impede its recovery bias and growth in upcoming sessions. To be specific, a combination of upper trendline descending triangles as well as price ceilings are already limiting the upside attempts of the WazirX token.
Other significant resistance levels worthy of note include the 200-day exponential moving average and the 50-day exponential moving average. If a pullback should occur and successfully breaks the support, the WazirX token risks falling back into the lower trendline triangle to a price of $0.75.
If the pullback fails to happen, then it will be a joyous ride for WRX holders to the $3.80/price mark predicted by Marks. Hopefully, the market conditions are beneficial for WazirX tokens but until then, fingers crossed.