PYUSD Chart Shows Potential for Wave 5 Down, Implications for Crypto Market

PayPal's stablecoin, PYUSD, is showing potential as a momentum indicator for the crypto market, according to a recent analysis by TheGemHunter on TradingView. The chart of PYUSD.D, which tracks the stablecoin's price, has been moving in reverse correlation against the total cryptocurrency market, BTCUSD TOTAL. This makes it a useful tool for traders looking to gauge market sentiment.

The analysis points out that PYUSD.D has been in a large sideways action, forming a triangle pattern, which could be indicative of a B, X, or 4th wave in the market. The chart shows that primary wave 5 down is still in effect, with a subdivision into lower degrees. The bounce from the 0.618 level, which is a well-known support and reversal area, cannot be labeled as intermediate wave (3) of primary wave 5, suggesting that a minor wave 1 has printed at that level.

The 1HR chart of PYUSD.D shows a 5-wave impulse up forming yellow A, followed by an expanding triangle that forms yellow B. Another 5-wave impulse is moving up, potentially marking minor wave 2. The analysis suggests that if this tops out, it may again become impulsive to the downside.

The potential for a wave 3 of (3) of primary wave 5, which could drop lower than anticipated, has significant implications for the crypto market. The 0.786 ratio at $0.07629 could provide support and the possibility of a bounce.