One of the recent and most exciting stories among many crypto enthusiasts is the developments with Tron.
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TRON (TRX) Technical Analysis
TRON, the cryptocurrency that was developed and subsequently tokenized in September 2017, has been making a landmark success in the cryptocurrency market toppling other cryptocurrency big guns. The unique approach of TRON in disrupting the entertainment industry has contributed immensely to its popularity among a large percentage of traders.
For the past two weeks, TRON was trading in a slightly downward trending range channel which started forming on about January 31, 2018. TRON’s price action completely traversed the range channel six times before decisively breaking out to the upside on April 18, 2018, at a price level of $.045+. Since then, TRON has been trading on a strong upward trajectory. The daily bar since April 13th, prior to the breakout from the channel, has traded above the 9-day moving average, with all four data points of the bar.
The above chart displays a detailed view of the strong upward movement. The upward price action has steadily followed the upward trend line. The downward price swings have consistently approached and tested the trend line before turning back up and resuming its upward track.
We now witness the fifth downswing to the upward trend line. Consequently, with each additional upward price swing, the probability of TRON breaking below the trend line increases significantly.
If the price breaks decisively below the trend line, a shorting opportunity will present itself. A short position with a stop-loss at the high of the prior price swing will be a prudent trade. If price turns upward and trades to a level near the middle of the range between the high of the prior price swing and the level at which price subsequently intersected the trend line, then a long position with a very tight stop-loss would be appropriate.
Once the trend line is broken and a retracement takes place, TRON is expected to set up for another bullish run. This is the first significant upward price move since bouncing off the local low coming from the prevailing Bear market.
Our view is that, although the TRX token has had a resistance in price that dangled around the $0.03 mark to the $0.04 since the beginning of the year, the ERC20 token that is set to break off from Ethereum’s Blockchain to its own Mainnet is on the verge of another rise.
Many fundamental activities are also supporting the claim. Recently, Justin Sun, the founder of TRON, has announced a few major updates in the coming months which are going to make a pivotal impact on this currency’s future and consequently its holders’ as well.
With the detailed roadmap set for Tron throughout the rest of the year, TRX holders wait with anxiety for a variety of developments including TRON’s super representative election that is set to be held on June 26th, token wallet launches and much more.
Within just seven months of this coin’s inception, TRON has managed to become one of the top ten cryptocurrencies in the market. With the aforementioned developments, its future is looking even brighter. We recommend loading some TRX in your bag since the number of TRX investors is likely to increase significantly by the end of this year. We expect the value of TRON to touch $1 USD by the end of the year.