PAXG Crypto News: Uptrend Remains Intact as Gold Bounces Off $4,500

PAX Gold (PAXG), the tokenized asset that offers exposure to the precious metal, has booked a 5.4% jump in the past 24 hours and briefly reclaimed the $5,000 level during the American session.

Trading volumes remain quite high at 44% of the token’s market cap, indicating strong selling pressure from crypto enthusiasts.

PAXG is a blockchain-based alternative for gold traders issued by Paxos Trust Company. Each token represents one fine Troy ounce of a gold bar, making PAXG a fully collateralized real-world asset (RWA).

This company is regulated by the New York State Department of Financial Services and the Office of the Comptroller of the Currency (OCC), which makes it one of the safest choices to buy gold digitally.

PAXG currently lives on the Ethereum Virtual Machine and can be easily traded via centralized exchanges like Binance, Coinbase, OKX, and more.

Open Interest (OI) Has Retreated by 21% Since January 26

The token has accumulated a 74% gain in the past year as gold prices have exploded amid geopolitical uncertainty, including President Donald Trump’s ongoing trade war with certain countries.

Gold Futures Open Interest (OI) – Source: CME Group

However, gold prices retreated sharply since January 29 after hitting $5,500. The selling pressure pushed PAXG to as low as $4,437 during yesterday’s session, flushing out some excess leverage as the precious metal has been a one-sided trade for months.

Data from the CME Group shows that open interest had already started to decline since January 26. At the time of writing, OI has dropped by 21% to 414,776 contracts.

The extent to which OI declined indicates both a risk-off move and the result of a strong wave of liquidations.

No Buy Signals Yet, But Bullish Structure is Holding Well

Despite this temporary retreat, PAXG has bounced back today with a 5.2% gain. Buying interest skyrocketed after gold hit $4,500.

The daily chart shows that gold was already due for a strong pullback as the Relative Strength Index (RSI) hit overbought for the first time on January 20. This is typically a signal for swing traders to start scaling back their positions and take some profits off the table.

PAXG/USD Daily Chart (Capital.com) – Source: TradingView

Hence, this pullback did not confirm a trend reversal as the price respected its structural support at $4,500. Gold is still on an uptrend.

The latest buy signal in the daily chart for PAXG yielded a 14% gain. The entry back then was right around $4,750, which makes this a key level to watch from an institutional standpoint, as it was the one that brought in the highest volumes at the time.

As long as prices stay above that mark in the next few days, the past few days may have created the necessary room for late buyers to come in and push gold to a new all-time high or at least to retest the current one.

PAXG/USD Hourly Chart (Capital.com) – Source: TradingView

Heading to the hourly chart, we also got an early sell signal back on January 29 with an entry at $5,225. This one was followed by a 14% drop. Thus far, we have not seen a buy signal in this lower time frame, so we still need to wait and see if that key level at $4,750 holds.

A bullish structure has formed in this time frame, but these are less reliable and much more volatile. These are early signs of a recovery that need to be confirmed by strong volumes at key levels. That said, despite cryptos’ ongoing rout, gold’s party is not over yet.