Tron Analysis – TRX

This week leaves us with new lows in $BTC and $ETH, which continue the downtrend of the last month. The medium term situation remains the same, as we have seen -10% moves since Thursday for both tokens. We continue with increasing ups and downs since the end of January, complaining as a support zone the $34k in $BTC and the $3,200 in $ETH.

This time I wanted to analyze the TRX token of the TRON network. During this week it has generated a +20% increase in its price, in a mainly bearish week for the crypto market.

TRON is one of the most popular blockchain networks for creating decentralized applications (DApps). Its main goal is to ensure that Blockchain technology is suitable for everyday use. TRON claims that its network is capable of performing 2000 transactions per second.

TRON has positioned itself as an enabling environment for content creators to connect directly with their audiences. By eliminating centralized platforms, be they streaming services, app stores or music websites, creators are expected to receive fewer commissions from middlemen. In turn, this also helps make content less expensive for consumers.

Its network uses the Proof of Stake (PoS) consensus mechanism. Their TRX token connects the entire TRON ecosystem and is also used as a reward method for their validators.

If we move on to analyze the price evolution of TRX, we can see that there is a long-term uptrend since 2020 and a secondary downtrend that started in April 2021.

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These trends form a wedge that, despite this week’s upward movement, remains in force in the market. During this week we have seen how this downtrend acted as resistance and made the price bounce from $0.09, where we can see a “conflict zone” that has already acted as support and resistance on different occasions.

It is also worth mentioning the support that stopped the price last summer at $0.05 and that has acted as support again this year, generating an accumulation zone that has preceded the upward momentum of this month, and that we can better appreciate in the 1h Japanese candlestick chart.

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In this image we can detect that the accumulation zone is close to $0.05, which is generating increasing highs and lows, and  is more pronounced since the end of April. There is an increase in price with a significant entry of volume.

After this situation, this bullish momentum was produced and went from $0.06 to $0.09 in just 5 days.

The TRX price was also affected by the general correction on Thursday, but did not leave any new lows and therefore continues to respect the monthly uptrend.

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If we focus on the current situation, we can see how the RSI has failed to generate a new crossover above 70, while the price is recovering from the downtrend. This could imply a loss of strength in the bullish continuation, which would be confirmed by the creation of a new low.

Therefore, we will closely follow its current evolution, as if strong buying volume does not come in, we are likely to see indecision in this area over the next few days and given the proximity of the price, the resistance zone and the downtrend. The price could trigger a bearish move.

But if price fails to make new lows and we see this resistance break on volume, it could start a revival of the main uptrend which could take price to its ATH at $0.18 or even to its first technical target which is near the $0.25 level.

Finally, remember that nothing discussed in our articles can be considered as investment advice, everyone must do their own analysis and develop their own trading strategy. From the Belobaba Crypto Fund team we only show our analysis and our investment tools and how they help in our operations when making decisions.