PAX Gold price shattered a key barrier on December 27, confirming a highly bullish technical setup. The price then rose approximately 9% to highs of $1,889, levels last seen in April. before correcting to the current levels. The recent correction was a result of investors taking profits on the rally to $1,920, but this may be short-lived as it provided an opportunity to buy PAXG at a discount driving the ongoing recovery.<\/span><\/p>\n

PAX Gold Price Must Hold Above The 50 SMA<\/span><\/h2>\n

The <\/span>PAX Gold price <\/span><\/a>was trading above an inverse head-and-shoulders chart pattern; the technical formation was confirmed in late December. This signaled the beginning of a bullish breakout as shown on the daily chart below. This happened once the price closed above the governing chart pattern’s neckline at $1,798. <\/span><\/p>\n

At press time, the PAXG token was trading at $1,867, a level embraced by the 50-day Simple Moving Average (SMA) after being rejected by the $1,920 psychological level over the weekend. The PAXG bulls are currently driving a recovery that would see the price grow and reach the technical target of the inverse H&S set up at $1,991. Such a move would represent a 6.5% uptick from the current price.<\/span><\/p>\n

For this to happen, the bulls must ensure a daily candlestick close above the 50-day SMA (yellow line) which is the immediate support. If this happens, it would suggest that the buyers are aggressively defending this support zone.<\/span><\/p>\n

Note that the price has not slipped below this dynamic support since November 4 November, just before the FTX fiasco<\/a> sent crypto prices tumbling. PAX Gold went on to rally 11.5% toward the neckline. Therefore, this is a crucial defense line for PAXG that it must hold to avoid further losses. <\/span><\/p>\n

PAXG\/USD Daily Chart<\/b><\/p>\n

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