The recent cryptocurrency market trends paint a picture of volatility with Polygon (MATIC) witnessing a downward trend for the fourth day in a row, hitting a ten-day low. Meanwhile, Cosmos (ATOM) displayed a strong rebound, bouncing back from its lowest point since mid-September.
A Closer Look at Polygon's (MATIC) Performance
Polygon (MATIC) continued its recent bearish trend in the current trading session, marking its fourth consecutive day of losses. The week kicked off with MATIC/USD at a high of $0.5396, but the value witnessed a downward trend, hitting an intraday low of $0.5241.
This fall brought the cryptocurrency to its weakest point since September 29, when the price hit rock bottom at $0.5163. The current market trends seem to indicate that sellers are making an effort to push MATIC towards a support point at $0.5070.
In order to reach this point, the Relative Strength Index (RSI) has to hit its floor at 40.00. At the moment, the RSI for MATIC is hovering around 43.75. However, market bulls are likely waiting in the wings, ready to make a move as soon as Polygon edges closer to the aforesaid support level.
Cosmos (ATOM) Shows Signs of Recovery
Starting off the week on a supportive note, Cosmos (ATOM) showed a strong rebound on Tuesday. The ATOM/USD pair jumped to a peak of $7.14 in the current trading session, a significant rise from the low of $6.63 experienced less than a day ago.
Monday's low point was the weakest that Cosmos had been since September 15, the last time the price broke through a support level of $6.65. The recent bounce-back seems to be a rejection of the bearish sentiment by market bulls, who now appear to be aiming for a resistance zone of $7.60.
However, the upcoming ceiling at the 48.00 level on the RSI indicator could potentially pose a significant challenge to this prospect. Despite this, the market is buzzing with anticipation as to whether a rally towards the $7.60 mark is on the cards this week.
Given the dynamic nature of the cryptocurrency market, only time will tell whether these predictions will come to fruition.
Frequently Asked Questions
Who is entitled to the gold in a IRA that holds 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 eventually sell the gold, you'll need a report on its value. This could impact the amount of capital gains taxes your owe if you cash in your investments.
Consult a financial advisor or accountant to determine your options.
Is buying gold a good retirement plan?
Buying gold as an investment may not seem very appealing at first glance, but when you consider how much people spend on average on gold per year worldwide, it becomes worth considering.
The best form of investing is physical bullion, which is the most widely used. You can also invest in gold in other ways. It's best to thoroughly research all options before you make a decision.
If you don't want to keep your wealth safe, buying shares in companies that extract gold and mining equipment could be a better choice. If you need cash flow to finance your investment, then gold stocks could be a good option.
You can also invest your money in exchange-traded fund (ETFs), which give you exposure to the gold price by holding securities related to gold. These ETFs often include stocks of gold miners, precious metals refiners, and commodity trading companies.
How much of your IRA should include precious metals?
When investing in precious metals, the most important thing to know is that they aren't just for wealthy people. You don't need to be rich to make an investment in precious metals. There are many ways to make money on silver and gold investments without spending too much.
You might think about buying physical coins such a bullion bar or round. Shares in precious metals-producing companies could be an option. Or, you might want to take advantage of an IRA rollover program offered by your retirement plan provider.
No matter what your preference, precious metals will still be of benefit to you. They are not stocks but offer long-term growth.
And unlike traditional investments, they tend to increase in value over time. If you decide to sell your investment, you will likely make more than with traditional investments.
How is gold taxed in Roth IRA?
Investment accounts are subject to tax based only on their current value and not the amount you originally paid. So if you invest $1,000 in a mutual fund or stock and then sell it later, any gains are subject to taxes.
However, if the money is deposited into a traditional IRA/401(k), the tax on the withdrawal of the money is not applicable. Only earnings from capital gains and dividends are subject to tax. These taxes do not apply to investments that have been held for more than one year.
The rules governing these accounts vary by state. Maryland is an example of this. You must withdraw your funds within 60 calendar days of turning 59 1/2. Massachusetts allows you up to April 1st. New York has a maximum age limit of 70 1/2. To avoid penalties, plan ahead so you can take distributions at the right time.
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- Want to Keep Gold in Your IRA at Home? It's Not Exactly Legal – WSJ
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
3 Ways to Invest in Gold for Retirement
It is important to understand the role of gold in your retirement plan. There are several options to invest in precious metals if your employer has a 401k. You may also be interested in investing in gold beyond your workplace. If you have an IRA (Individual Retirement Account), a custodial account could be opened at Fidelity Investments. You might also consider purchasing precious metals directly from a trusted dealer if they are not already yours.
These are the three rules to follow if you decide to invest in gold.
- You can buy gold with your cash – No need to use credit cards or borrow money for investment financing. Instead, deposit cash into your accounts. This will protect you from inflation and help keep your purchasing power high.
- Physical Gold Coins You Should Buy – Physical gold coins should be purchased over a paper certificate. Physical gold coins can be sold much faster than paper certificates. Physical gold coins are also free from storage fees.
- Diversify Your Portfolio. – Do not put all your eggs into one basket. This is how you spread your wealth. You can invest in different assets. This helps reduce risk and gives you more flexibility during market volatility.
By: Eliman Dambell
Title: Cryptocurrency Market Analysis: A Deep Dive into Polygon and Cosmos
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