At the beginning of this week, Justin Sun’s TRON was probably the only top cryptocurrency that recorded massive gains, in contrast to the rest of the bearish market.
Strong fundamentals, including the Tron’s recent acquisition of BitTorrent and uTorrent, the launch of their Tron Virtual Machine (TVM), and a secret project (announced later as Project Atlas), combinedly helped TRX token rise as much as 10% against the USD. At the same time, leading cryptocurrencies, including Bitcoin and Ethereum, were stagnant.
It seems the hype surrounding the Tron announcements is now wearing off.
The TRX/USD pair on BitFinex has dropped almost 24% since establishing its weekly peak at 0.0409-fiat. In the last 24 hours itself, the pair has witnessed a 6% drop at the time of this writing.
We looked at a larger timeframe to locate potential downside targets that could trigger a bounce-back, strictly according to the technical standards. The chemical nature of the previous rally cannot guarantee anything at this moment. What can be seen in the following 1D chart, however, is TRX/USD attempting to find strong support near 0.0309-fiat.
As we are not actively trading TRON, it would be unwise of us to present an intraday breakdown as we do in our regular Bitcoin analysis. But we can still use the opportunity to look into the technical indicators of the 1D chart above. As visible, the TRX/USD has slipped below its 50- and 100-H MA, with 50H (red) crossing below 100H (blue), specifically. The RSI, now at 36-37 indicates a neutral sentiment, while the Stochastic Oscillator, in the oversold territory, looks neutral as well. Together, our primary technical indicators point to a firm selling sentiment.
The 1-week market overview of the Tron market could be termed as a classic pump-and-dump. Beyond the timeframe, there can still be some upside action, if price manages to sustain above $0.0309 for a more extended period. If that happens, retesting $0.0409 would be possible. In another scenario, in which Tron continues to stay in a downward trajectory, the action could shift towards 0.0281-fiat, a level that on many occasions has reversed the bearish sentiment for TRX/USD.
Justin Sun, Tron’s CEO and Founder, has announced the launch of TronWallet, an Android-based application that allows TRX holders to send, receive and freeze their tokens. The app also enables users to vote for the Super Representatives, participate in token sales.
Meanwhile, the Tron community is also keeping tabs on the surprise project, announced as Project Atlas. According to Sun’s statement, Atlas would integrate Tron’s core protocol with BitTorrent to incentivize digital content creators and seeders. Furthermore, bullish sentiments could be pushed at the end of August when Tron will launch a more stable and secure, Ethereum-compatible version of its TVM.
Featured image from Shutterstock. Charts from TradingView.
Last modified (UTC): August 3, 2018 14:50