Here’s why WazirX’s WRX token price is pumping

WazirX token was one of the best performers on December 3 as it formed a long God candle.

WazirX (WRX) price rose to $0.3500, its highest level since March 14 and 255% above this year’s low point.

This rally comes as developers provide an update on ongoing legal issues following the hack in July.

The developer said in a statement that they had approached the Singapore High Court to hold a planning meeting. This would be a crucial step towards final distribution as it offers the fastest recovery solution, is fair and equitable to all creditors, and is legally binding.

Distributions will be made within ten business days after the plan is approved by creditors and the court in Singapore.

WazirX price also jumped after the developers sent an update regarding the rebalancing of assets. They stated that they are in the process of rebalancing the tokens on the exchange. This will be a significant step towards eventual allocation to cold wallets.

All these events took place a few months after WazirX, a major crypto exchange at the time, was hacked. Hackers spent over $235 million in what was seen as an inside job by some crypto analysts. Delhi police arrested a person suspected of carrying out the hack.

Cryptocurrency tokens from troubled companies like Celsius, Safemoon, and FTX Token often jump when there is a major regulatory breakthrough.

WazirX price analysis WazirX price chart | Source: TradingView

The daily chart shows that the WRX token has made a strong comeback, up over 260% from its lowest point this year. It later regained some of these gains, falling to $0.30. A golden cross pattern was formed when the 50-day and 200-day Exponential Moving Averages reversed each other.

The WazirX token has also been moved to the over-extension level of the Murrey Math Lines tool. It is also slowly forming a cup and handle formation with an upper end at $0.3947, approximately 34% above the current level.

Therefore, WRX price will likely continue to rise if the bulls break the overshoot point at $0.35. A decline below $0.20, the strong pivot reversal point, would invalidate the bullish view.