We are facing a financial "perfect storm" on February 5, 2026.
1. Analysis of Current Behavior
The price is around $4,748 USD, with a drop of nearly 5.8% in the last 24 hours.
In the 15-minute chart: A free fall ("cascade") is observed that has breached several local supports.
In the 1H and 4H charts: The price has strongly broken through the moving averages (MA7, MA25, and MA99), indicating that the bearish momentum has total control in the short term.
Chart 1.
2. Factors Influencing the Price
The "Dollar King" Strikes Back: Recent positions from the Federal Reserve have strengthened the USD. When the dollar rises, commodities like gold, due to inverse correlation, tend to fall.
Crypto Contagion and Deleveraging: With Bitcoin losing the $70,000 level down to $62,345 today, panic has taken over the market. Investors are selling everything, even their safe-haven assets like PAXG to gain immediate liquidity and cover losses in other sectors.
Hangover from Historical Highs: After hitting incredible peaks over $5,600 in January, the market was "overbought". Today's break has triggered a cascade of automatic sell orders (stop-losses), accelerating the decline.
3. Technical Analysis: Supports and Resistances
4. Expectations for the Next Hours
Change Signal? There is still no clear reversal signal. The RSI (Relative Strength Index) on the charts you sent shows that the asset is entering oversold territory, which could generate a small "dead cat bounce" towards $4,800, but the larger trend remains bearish.
Probable Scenario: Lateralization or slight technical bounce to test the resistance of $4,820 before deciding whether the decline continues towards $4,500.
Conclusion for the Investor
PAXG is experiencing a "perfect storm": strength of the dollar, correction after historical highs, and widespread liquidation in the crypto sector. This is not an isolated movement of PAXG, but a global portfolio adjustment.
Important note: The zone of $4,740 - $4,745 is vital. If the closing of the 4-hour candle remains below that level, selling pressure could intensify towards the minimum of $4,463 marked on your chart.
Are you buying the dip or waiting outside the market? I read your comments. 👇
Like 👍 and follow me if this information was helpful.
#PAXGUSDT #PAXG #MarketCorrection #PreciousMetalsTurbulence
