Gold (PAXG) saw record wallet activity and profit-taking as the gold tries to recover from a 7-month low. Although profit-taking may show that gold is under selling pressure, the wallet activity has a different story.
PAXG recovers after crashing to a 7-month low
According to Santiment, an on-chain data analysis tool, tokenized gold (PAXG) is being bombarded with sell pressure as it tries to rise from November 2025 lows. PAXG crashed below the physiological resistance level of $4,000 as traders took profits from the recent price appreciation.
During this surge, PAXG crossed the $5,000 price level, reaching above $5,400. For investors who entered the market during the third and last quarters of 2025, this level presented an excellent opportunity to take profits.
The rally pushed many long-term holders into significant unrealized gains, prompting a wave of profit-taking that temporarily slowed the upward momentum. Such behavior is common after a strong appreciation, as early investors lock in returns while new buyers assess whether the bullish trend still has room to continue. Despite the selling pressure, sustained demand could allow PAXG to consolidate at higher levels before attempting another leg up.
PAXG user activity increases despite crashing prices
At the same time, the network recorded an all-time high in active addresses, indicating a surge in user participation and transaction activity. Rising active addresses suggest that more investors and users are interacting with the network, reflecting stronger demand and healthier ecosystem growth. Unlike a price rally driven purely by speculation, an increase in active addresses points to growing utility and adoption, which can provide a stronger foundation for sustained price appreciation if the trend continues.
PAXG could reach $4,800 when the price breaks out
As shown in the chart below, PAXG is trading inside a falling wedge, which is a bullish pattern. Inside the falling wedge, sellers continue to push prices lower, but each decline loses strength as buyers steadily absorb the selling pressure. The narrowing price range reflects weakening bearish momentum, and a breakout above the upper trendline often signals that bulls have regained control, potentially leading to a sustained recovery.
With PAXG approaching the apex of the falling wedge, the likelihood of a decisive breakout is increasing as the pattern nears completion. A falling wedge typically reflects weakening bearish momentum, where sellers continue to push prices lower but with diminishing strength as buyers gradually absorb the selling pressure.
Once the price breaks above the upper trendline, technical analysts often estimate the upside target by measuring the height of the wedge at its widest point and projecting that distance from the breakout level. If PAXG follows this conventional technical setup, the projected move points toward the $4,800 region.
A confirmed breakout, particularly if accompanied by rising trading volume, would strengthen the bullish case and suggest that buyers have regained control after the prolonged consolidation. However, the pattern would still require confirmation, as a failure to break above resistance could extend the period of sideways trading or trigger another pullback.
