Here’s Why WazirX’s WRX Token Price is Pumping

WazirX’s WRX token has recently seen a significant price surge, making it one of the top performers on December 3, after it formed a long “God candle,” which is a strong bullish signal. The price of WRX surged to $0.3500, marking its highest level since March 14, and representing a 255% increase from its lowest point earlier this year.

The surge in price came after the WazirX developers provided important updates regarding the ongoing legal issues related to the hack that took place in July. The developers announced that they had applied to the Singapore High Court to convene a scheme meeting, which is considered a crucial step for distributing assets. This process is expected to offer the fastest, fairest, and legally binding recovery solution for creditors, with distributions planned to be made within ten working days after approval from the court and creditors.

Additionally, the price of WRX saw a jump after the developers shared news about the ongoing asset rebalancing process. WazirX is in the midst of rebalancing tokens on its exchange, a necessary step toward final allocations to cold wallets. This comes several months after WazirX, once a major crypto exchange, was hacked, resulting in over $235 million in losses. Some analysts suspect the hack may have been an inside job, and Delhi police arrested a suspect in connection with the breach.

The token’s recent rally is reminiscent of other troubled cryptocurrency tokens, such as those of Celsius, Safemoon, and FTX, which often experience price jumps following major legal developments.

From a technical analysis standpoint, the WRX token has shown strong recovery, rising more than 260% from its lowest point this year. While it recently saw some price correction, the chart reveals the formation of a golden cross pattern, where the 50-day Exponential Moving Average (EMA) crosses above the 200-day EMA, which is typically a bullish signal. Moreover, the WRX token has moved to the extreme overshoot level on the Murrey Math Lines tool, and it is forming a cup-and-handle pattern, with the upper part of the cup at $0.3947, about 34% above the current price.

Given these developments, the WRX price is expected to continue rising if it successfully breaks through the $0.35 resistance level. However, a drop below the critical support level at $0.20 would invalidate the bullish outlook.