Technical Analysis and Market Entry: Tron (TRX) – Bull Case Eyed with New 300 Million User Exposure

  • The Tron (TRX) price has been a victim of profit-taking after running into a strong area of supply.
  • TRX/USD pullback provides another chance of a buy entry for greater upside.

TRX/USD: Recent Price Behavior

The Tron price has recently been hit with a hammer blow, after running into a big area of supply. Before the cooling noted of late, the TRX/USD bulls were aggressively pushing the price north to the highest level seen since 10th January. The price had jumped around 40% before meeting massive resistance.

Significant buying came into play within a known demand zone that tracks from $0.0230 down to $0.02100. The price had not traded below the noted area since the very start of 2019 on 2nd January, at the time when TRX was recovering. Throughout the year so far, TRX/USD has been very much reliant on this for comfort.

TRX/USD daily chart.

Heavy Supply Zone

As noted above, TRX/USD upside has been cut short for now, with the supply seen from $0.03000 up to $0.032500. The price has not traded comfortably above this region since July 2018, proving the significance. On 10th January, TRX bulls managed to very briefly push above, which was short-lived as the bears quickly moved in to take the life out of the bulls.

Further north, there is another strong area of sellers where the price wicked higher on 10th January. It can be observed tracking from $0.03400-$0.03600, which is the last significant barrier ahead of a return to $0.04000. TRX/USD has not traded within this territory since July 2018, when the market saw a strong pick-up of downside momentum.

TRX Exposed to 300 Million Users

Popular interest browser Opera has announced it will support TRON and tokens based on the TRC standard. Opera detailed that the list expansion of its supported cryptocurrencies is part of its commitment to making the Web 3.0 ecosystem more inclusive and user-friendly. Due to Tron integration, hundreds of millions of Opera users will be able to access the cryptocurrency.

Krystian Kolondra, EVP at Opera, commented on the announcement:

“TRON is a popular, quickly developing blockchain with a swiftly growing dApp ecosystem. We are happy to open our browser to it. By opening products to multiple blockchains, we are accelerating the mainstream adoption of Web 3.”

The mass exposure is within reaching distance for TRX; Opera integrated its crypto wallet functionality within its Android app back in December 2018. It further extended the feature onto the desktop app for PCs in April 2019. The iOS version is in beta stage and expected to be released later this year. The browser has over 300 million users around the globe, which sets TRX up for a decent exposure.

Trade Recommendation

If the price sees a daily closure below the noted stubborn supply, $0.03000 up to $0.032500, then TRX will see a significant retreat. The next area to the downside for longs would be the $0.0230 to $0.02100 range, where a secure demand zone is observed. Targets to the upside would be $0.03500 and then further north at $0.04000.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Author:
Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.