WazirX exchange\u2019s native token,\u00a0WRX, benefited the most from India\u2019s latest U-turn on crypto this week.<\/p>\n
WRX\u2019s price jumps on India tax news<\/h2>\n
WRX\u2019s price surged nearly 30% to over $1, hitting a three-week high after the Indian government had\u00a0announced a\u00a0new tax regime for the regional crypto sector<\/a>, reversing entirely from its earlier strict stance that even contemplated an outright ban<\/a> on the emerging industry.<\/p>\n $WRX<\/a> – Up on news! https:\/\/t.co\/Ln504eUZzm<\/a> pic.twitter.com\/zN3pW84DPY<\/a><\/p>\n \u2014 Yo! Crypto \u20bf (@YoCrypto) February 1, 2022<\/a><\/p><\/blockquote>\n In her budget speech on Tuesday, Finance Minister Nirmala Sitharaman said that the government plans to tax the income from trading cryptocurrencies at 30%, which, while among the highest rates in the world, also means that digital assets are recognized in India and may soon gain legal status<\/a>.<\/p>\n WRX\u2019s price jumped after Sitharaman\u2019s speech, which was probably due to its association with an India-based crypto exchange, WazirX<\/a>. The WRX token serves as a utility token on the platform, benefitting users with trading fee discounts and access to new token airdrops.\u00a0<\/p>\n Utility tokens typically derive their value from speculations that their adoption would grow in tandem with the growth of their platform, one that is no longer in regulatory limbo.\u00a0<\/p>\n Javon Marks, an independent market analyst, predicted further price booms in the WRX market, noting that the WazirX token could climb<\/a> toward $3.80 from its current $1 levels. At the core of his bullish analogy was a technical setup, as shown in the attached chart.<\/p>\n In detail, WRX\u2019s ongoing price boom had its price break above a multi-month downward sloping resistance trendline. Marks noted that the breakout \u201ctechnically\u201d positions the WazirX token to rise by another 252% in the coming sessions to its April 2021 resistance targets.<\/p>\n \u201cAs long as WazirX\u00a0holds this break, this target will remain pushable,\u201d the analyst tweeted<\/a>\u00a0on Wednesday.<\/p>\n The statement also surfaced as the crypto market, on the whole, remained in a state of turmoil after a depressive January performance<\/a>. WRX itself dropped more than 30% into the month, mirroring similar moves across the top-ranking crypto assets, including Bitcoin (BTC<\/a>), which tanked nearly 18% in the same period.<\/p>\n WazirX\u2019s\u00a0day-to-day correlation with broader crypto market trends, however, puts WRX at risk of bearish continuation. It is primarily because the catalysts that played a key role in pushing the digital assets lower in January 2022 \u2014 the United States\u00a0Federal Reserve\u2019s hawkish turn<\/a> \u2014 remain intact.<\/p>\n\n
Another 250% rally ahead?<\/h2>\n
![](\"https:\/\/s3.cointelegraph.com\/uploads\/2022-02\/5951da80-d1eb-47f4-ab86-cba1b2fc3bf7.jpeg\")
The interim pullback scenario<\/h2>\n
![](\"https:\/\/s3.cointelegraph.com\/uploads\/2022-02\/b337babb-f7d4-400c-8101-24cd7cfdb675.png\")