PAXG Price Prediction - Where Will the Gold-Backed Crypto Go in 2023

Join Our Telegram channel to stay up to date on breaking news coverage

2022 has been a wake-up call for several cryptocurrency enthusiasts. They are no longer content by investing in assets that don’t have a good discernible use case. Also, when it comes to tradable assets, the new investors have become selective. It is one of the reasons why the PAXG price has been trending in volatile zones for the past 24 hours.

Read to learn what experts are forecasting about the price of this gold-backed cryptocurrency.

What is Pax Gold?

There are many ways to own physical gold – but the best is one that lets you have its own within the digital space as well. That’s where Pax Gold comes in to shine. This cryptocurrency is backed by physical gold, and according to the official website, it allows gold traders to tap into the benefit of blockchain technology.

So, what is Pax Gold? In simple terms, it is a digital asset connected to investment-grade gold. One Pax Gold token is backed by one fine troy ounce of gold. The gold is stored in London’s LMBA vaults. While you own the token, the physical gold is in the custody of the Paxos Trust Company.

Why has PAX Gold Started to Get So Much Attention?

It is the end of the year, and like all cryptocurrencies, Pax Gold is also trading for volatile reasons. However, because it is backed by a physical asset that has been on the pricing charts for decades, Pax Gold is apparently less volatile than most cryptocurrencies in the market.

After jumping up in price at the beginning of December, PAXG has been trading between the $1770 and $1820 range – which is a great sign as it reveals that the FTX crash hasn’t pushed the PAXG value towards a downward trend. But why is Pax Gold such a good investment right now?

It is Cost Efficient

The biggest benefit of owning a Pax Gold token is that it is cost-efficient. According to the official website, it has a lower cost structure than other gold tokens as well as other traditional gold-based assets such as Gold ETFs and LMBA 400t oz bars. Also, people can grab these tokens at a low purchase price since there are no storage fees added to the price.

It is Secure and Regulated – A Rare Thing Within a Cryptocurrency Space

We have gone through so many negative legal implications regarding cryptocurrencies this year that secure and regulated are two words that we almost never use for crypto assets. However, the allocated gold that is currently backing PAXS is under the LMBA vault’s custody. The vault goes through monthly audits. Furthermore, Paxos, the trust company that’s protecting these assets, is regulated by the New York State Department of Financial Services.

There are no settlement risks Involved

With Pax Gold, you won’t have to worry about any settlement or credit risk. Settlement happens instantly in T+2. The lack of settlement risk offers traders an additional layer of security – which makes them feel more confident about investing in Pax Gold tokens.

The Gold is Redeemable

Pax Gold tokens can be redeemed or LMBA-accredited Good Deliver gold bullion bars. An institutional customer can also redeem the tokens for any amount of unallocated Loco London Gold. Another large factor to keep in mind is that.

It is a Low-Risk Asset

Pax Gold’s biggest strength is that it is a low-risk asset. It doesn’t have to bank upon any virtual “ecosystem” to generate value. Being backed by a physical asset gives it more value – and that’s what the entire cryptocurrency crowd is interested in. As a result, many reputable websites have marked it as a low-risk investment.

Pax Gold is a Stakeable asset

Apart from all the benefits that we just described, Pax Gold is also a stakeable asset – but it takes a different approach towards it. Instead of adding the tokens to some kind of liquidity pool, PAXG holders can earn interest by lending the gold to a custodian.

PAXG Price Prediction – What Do the Current Trading Charts Say

The current trading charts pretty much put this token in volatile zones. However, after taking a closer look at the candle chart, we found that many institutional investors are rallying behind this asset. We have seen multiple long greens that are enough to give us faith that an uptrend is established.

After the bear market that arrived in early 2022 after the LUNA crash, Pax Gold experienced a massive retrace. However, since it is an asset-backed by a physical equivalent, institutional investors continued to keep this price above the 2021 lows. The biggest drop it has experienced in recent months was in October 2022, when its value crashed to $1620. However, the token gained steam soon as the institutional and some affluent individual investors rallied to pump its price.

The trendline shows that it is headed in a positive direction, and we couldn’t find any instances of an artificial pump. That said, the current RSI for this asset rests at 63, which puts it dangerously close to the overbought zones.

While it might appear that a trend reversal could happen at any moment. We have to wait and see since the RSI hasn’t crossed 70 yet.

Also, the reactions to this asset’s current price action are leading many to mark that they are bullish about this cryptocurrency. For a long time, this asset has been toeing the line and is just about to cross the 70 mark. Whether it or not, it leads to something positive in the future still remains to be seen.

Can The PAXG Price Keep Moving In a Positive Direction?

PAXG’s performance in the past two months has been positive. There have been no sudden downturns, and it is one cryptocurrency that has the attention of even traditional investors. Furthermore, the price charts don’t show any chance of stopping right now.

Additionally, PAXG is closely following the Gold price chart – which will help it stave off the volatility that is currently rampant across the entire crypto space. However, in order to rest assured that the price will always be in a positive direction, we must keep a close watch on the upcoming trends.

Regardless of whether or not it is backed by a physical asset, PAXG still belongs to a volatile asset class. Therefore, investors must watch the market closely before investing.

Newest Meme Coin ICO - Wall Street Pepe

Rating