With the surge in popularity of cryptocurrencies, understanding market trends and the factors influencing them is crucial. In this article, we detail the recent market movements of two popular cryptocurrencies – Polygon (MATIC) and Cosmos (ATOM). We discuss their performance, analyse their trends and project their potential paths in the near future.
The Downtrend of Polygon (MATIC)
Polygon (MATIC), a well-known cryptocurrency, has been experiencing a downturn for the past four sessions. The negative sentiment has driven MATIC's price to a ten-day low, reflecting a more extensive market trend, with the global market cap also in the red, having fallen by 0.37% at the time of writing.
MATIC opened the week with a high of $0.5396, but it has since spiralled downwards, hitting an intraday low of $0.5241. This downward movement has led MATIC to its weakest point since September 29, a day when it bottomed out at $0.5163.
Market dynamics suggest that sellers may be trying to drive MATIC towards a support point of $0.5070. For this to happen, the Relative Strength Index (RSI), a key momentum indicator, would need to touch its own base level at 40.00. Currently, the RSI for MATIC stands at 43.75, indicating potential for further decline.
Market bulls, on the other hand, may be waiting for MATIC to approach its support level before reentering the market, potentially triggering a price reversal.
Cosmos (ATOM) Rebounds
In contrast to the bearish trend of MATIC, Cosmos (ATOM) began the week on a stronger note. Following a period of decline, ATOM rebounded robustly on Tuesday.
ATOM started the day trading at a low of $6.63 but surged to a peak of $7.14. This bounce marks a significant recovery from Monday's bottom, which was the lowest ATOM had traded since mid-September. The last time ATOM prices dropped to such levels, they broke the floor at $6.65.
This resurgence can be attributed to market bulls rejecting the downward trend. It appears that bulls are now eyeing a resistance zone of $7.60. However, an upcoming ceiling at the 48.00 level on the RSI could pose a significant challenge to this upward movement.
As the cryptocurrency market continues to evolve, understanding these trends and market dynamics is key to making informed investment decisions. Whether you're a bull waiting for the right moment to enter the market or a bear looking to capitalize on downturns, staying updated on these trends can be the difference between profit and loss.
Frequently Asked Questions
What is a Precious Metal IRA?
A precious metal IRA lets you diversify your retirement savings to include gold, silver, palladium, rhodium, iridium, osmium, osmium, rhodium, iridium and other rare metallics. These are “precious metals” because they are hard to find, and therefore very valuable. These metals are great investments and can help protect your financial future from economic instability and inflation.
Bullion is often used for precious metals. Bullion refers simply to the physical metal.
You can buy bullion through various channels, including online retailers, large coin dealers, and some grocery stores.
A precious metal IRA lets you invest in bullion direct, instead of purchasing stock. This ensures that you will receive dividends each and every year.
Precious metal IRAs are not like regular IRAs. They don't need paperwork and don't have to be renewed annually. Instead, your gains are subject to a small tax. Plus, you get free access to your funds whenever you want.
Who has the gold in a IRA gold?
The IRS considers any individual who holds gold “a form of income” that is subject to taxation.
You must have at least $10,000 in gold and keep it for at most five years to qualify for this tax-free status.
The purchase of gold can protect you from inflation and price volatility. But it's not smart to hold it if your only intention is to use it.
If you plan to sell the gold one day, you will need to report its worth. This will affect how much capital gains tax you owe on cash you have invested.
You should consult a financial planner or accountant to see what options are available to you.
What is the benefit of a gold IRA?
A gold IRA has many benefits. You can diversify your portfolio with this investment vehicle. You decide how much money you want to put into each account, and when you want it to be withdrawn.
You can also rollover funds from other retirement accounts to a gold IRA. This will allow you to transition easily if it is your decision to retire early.
The best thing is that investing in gold IRAs doesn't require any special skills. They are offered by most banks and brokerage companies. You don't have to worry about penalties or fees when withdrawing money.
There are also drawbacks. Gold has historically been volatile. Understanding why you invest in gold is crucial. Do you want safety or growth? Are you looking for growth or insurance? Only once you know, that will you be able to make an informed decision.
If you want to keep your gold IRA open for life, you might consider purchasing more than one ounce. One ounce doesn't suffice to cover all your needs. Depending on the purpose of your gold, you might need more than one ounce.
You don't need to have a lot of gold if you are selling it. Even one ounce is enough. You won't be capable of buying anything else with these funds.
What are the advantages of a gold IRA
You can save money on retirement by putting your money into an Individual Retirement Account. It's tax-deferred until you withdraw it. You control how much you take each year. There are many types to choose from when it comes to IRAs. Some are better suited for people who want to save for college expenses. Some are for investors who seek higher returns. Roth IRAs permit individuals to contribute after the age 59 1/2. Any earnings earned at retirement are subject to tax. These earnings don't get taxed if they withdraw funds. This type account may make sense if it is your intention to retire early.
Because it allows you money to be invested in multiple asset classes, a ‘gold IRA' is similar to any other IRAs. Unlike a regular IRA, you don't have to worry about paying taxes on your gains while you wait to access them. For people who would rather invest than spend their money, gold IRA accounts are a good option.
Another benefit of owning gold through an IRA is that you get to enjoy the convenience of automatic withdrawals. You won't have the hassle of making deposits each month. Direct debits could be set up to ensure you don't miss a single payment.
Finally, gold is one the most secure investment options available. Its value is stable because it's not tied with any one country. Even during economic turmoil the gold price tends to remain fairly stable. Gold is a good option for protecting your savings from inflation.
How is gold taxed within a Roth IRA
Investment accounts are subject to tax based only on their current value and not the amount you originally paid. If you invest $1,000 into a mutual fund, stock, or other investment account, then any gains are subjected tax.
You don't pay tax if you have the money in a traditional IRA/401k. Taxes are only charged on capital gains or dividends earned, which only apply to investments longer than one calendar year.
These rules vary from one state to another. Maryland's rules require that withdrawals be taken within 60 days after you turn 59 1/2. In Massachusetts, you can wait until April 1st. And in New York, you have until age 70 1/2 . To avoid penalties, plan ahead so you can take distributions at the right time.
What precious metal is best for investing?
Answering this question will depend on your willingness to take some risk and the return you seek. Although gold has traditionally been considered a safe investment choice, it may not be the most profitable. For example, if your goal is to make quick money, gold may not suit you. If patience and time are your priorities, silver is the best investment.
If you're not looking to make quick money, gold is probably your best choice. If you are looking for a long-term investment that will provide steady returns, silver may be a better choice.
Is gold a good choice for an investment IRA?
Any person looking to save money is well-served by gold. You can diversify your portfolio with gold. But there is more to gold than meets the eye.
It has been used as a currency throughout history and is still a popular method of payment. It's sometimes called “the world's oldest money”.
But gold is mined from the earth, unlike paper currencies that governments create. That makes it very valuable because it's rare and hard to create.
Gold prices fluctuate based on demand and supply. The strength of the economy means people spend more, and so, there is less demand for gold. This results in gold prices rising.
On the other hand, people will save cash when the economy slows and not spend it. This results in more gold being produced, which drives down its value.
This is why both individuals as well as businesses can benefit from investing in gold. If you make an investment in gold, you can reap the economic benefits whenever the economy is growing.
Your investments will also generate interest, which can help you increase your wealth. If gold's value falls, you don't have to lose any of your investments.
Statistics
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
External Links
forbes.com
wsj.com
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- Are you interested in keeping gold in your IRA at-home? It's not exactly legal – WSJ
investopedia.com
- Do You Need a Gold IRA to Get Retirement?
- What are the Options Types, Spreads. Example. And Risk Metrics
cftc.gov
How To
The History of Gold as an Asset
From the ancient days to the early 20th Century, gold was a common currency. It was popular because of its purity, divisibility. uniformity. scarcity and beauty. Aside from its inherent value, it could be traded internationally. Different weights and measurements existed around the world, however, because there were not international standards to measure gold. One pound sterling in England was equivalent to 24 carats silver, while one livre tournois in France was equal 25 carats. In Germany, one mark was equivalent to 28 carats.
In the 1860s, the United States began to issue American coins made from 90% copper, 10% Zinc, and 0.942 Fine Gold. The result was a decrease in foreign currency demand, which led to an increase in their price. In this period, large amounts of gold coin were minted by the United States, which caused the gold price to drop. The U.S. government was unable to pay its debts due to too much money being in circulation. They decided to return some of the gold they had left to Europe.
Many European countries didn't trust the U.S. dollars and started to accept gold for payment. However, after World War I, many European countries stopped taking gold and began using paper money instead. The value of gold has significantly increased since then. Although the price of gold fluctuates today, it remains one of your most safe investments.
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By: Eliman Dambell
Title: Market Movements: A Deep Dive into the Performance of Polygon and Cosmos Cryptocurrencies
Sourced From: news.bitcoin.com/biggest-movers-matic-drops-to-10-day-low-atom-rebounds-from-key-support-level/
Published Date: Tue, 10 Oct 2023 15:30:25 +0000
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