The government of India has announced that it does not consider cryptocurrencies illegal and their transactions remain in a gray area. The native token of altcoin project WazirX exchange WRX has been the token that has benefited the most from India’s latest U-turn this week. For details and technical analysis, continue reading at Kriptokoin.com.
Altcoin price skyrockets on India tax news
The price of WRX hit a three-week high after the Indian government announced a new tax regime for the regional crypto sector, surging nearly 30% above $1, fully reversing its previously solid stance.
In his budget speech on Tuesday, Finance Minister Nirmala Sitharaman said that the government plans to tax income from cryptocurrency trading at a rate of 30%. This statement means that digital assets are recognized in India and could soon gain legal status.
After Nirmala Sitharaman’s speech, the native token of WazirX, an India-based crypto exchange, took off. The WRX token serves as a utility token on the platform, providing users with transaction fee discounts and access to new token airdrops.
Crypto analyst Javon Marks sees more potential in WRX
Javon Marks, an independent market analyst, predicts further price bursts for WRX and claims that the token could climb to $3.80 from current $1 levels. In the chart below, the analyst shows a technical setup at the center of the bullish analogy.
WRX three-day price chart / Source: Javon Marks, TradingViewAccording to the analyst, the continued price boom of WRX took the price break above a bearish resistance trendline for several months. Javon Marks notes that the breakout “technically” positions the WRX to rise another 252% to its April 2021 resistance targets in the coming sessions.
“As long as WazirX maintains this gap, this target may be challenged,” the analyst tweeted on Wednesday. However, WazirX’s daily relationship with broader crypto market trends puts WRX at risk of a bearish continuation. The analyst states that WRX is facing a confluence of technical resistance that could limit its rebound in the coming sessions, and specifically states that a combination of price ceilings, including the upper trendline of a descending triangle, has already limited the token’s upward attempts.
WRX daily price chart with descending triangle setup / Source: TradingView
47736
