PIVX price pumps after forming a falling wedge. Is it a buy?

PIVX price jumped sharply on Wednesday at the same time as the costs of different cryptocurrencies nosedived. The token rose to a excessive of $0.2265, which was the very best degree since August 28. At its peak, the coin was up by greater than 44% from its lowest degree this week.

What is PIVX and why is it rising?

PIVX price defied gravity on Wednesday at the same time as the costs of different digital cash crashed. Bitcoin dropped to a low of $18,000 whereas the whole market cap of all digital cryptocurrencies dropped beneath $1 trillion.

For starters, PIVX is a privacy-focused cryptocurrency that emerged as a laborious fork of Dash. Dash, however, was created from a laborious fork of Litecoin, one of many oldest cryptocurrencies on the planet.

There are 4 important kinds of transactions in PIVX. First, there may be clear transactions the place the sender and recipient’s handle are all public. Second, there are de-shielding transaction, the place a protect handle sends funds to a clear one. 

Third, there may be a shielding transaction the place a clear handle sends to a protect one. Finally, there may be a protect transaction, the place a protect sender sends to a different protect handle.

Another PIVX characteristic is that it rewards its customers for simply holding the token. According to its web site, the common each day reward for the token is 2.52 PIV whereas the estimated annual yield is 9.18%. The complete provide locked in masternodes has risen to 24.53%.

It is unclear why the PIVX price is hovering as different cryptocurrencies crash. A doable cause is that this may very well be a pump and dump scheme. In 2021, customers complained after dropping over $112 million in a pump and dump scheme of the token. 

PIVX price prediction

The four-hour chart exhibits that the PIVX price jumped to a excessive of $0.3450 on August 27 of this yr. This was a 140% improve from the bottom degree through the month. It then had a freefall as demand for the coin crashed and after it moved to a distribution section. 

As the coin dropped, it fashioned a falling wedge sample that’s proven in black. In price motion evaluation, this sample is normally a bullish signal, which explains why its price rose. Still, with quantity nonetheless low, there may be a probability that the coin will resume the bearish development within the close to time period.