Technical Analysis and Market Entry: Tron (TRX) Subject to Further Moves South With Price Caught in a Bearish Flag
- Tron over the last couple of sessions has managed to find more stable footing, after the recent bloodshed.
- TRX/USD last week tested the bottom area of 2018, which remains vulnerable to downside risks.
TRX/USD: Recent Price Behavior
The Tron price is attempting to stage a rebound, after testing the 2018 low area down at $0.011150. Since falling to these depressed levels, TRX/USD has recovered some 35% at the time of writing. It comes after a heavy fall was encountered last week, the biggest fall seen in over six weeks, losing 30%. The market bears have been in control of the trend for over fifteen weeks now. As a result, the price has shed as much as 70% within this period.
TRX/USD on its move to the south recently gave back all of the 2019 gains, after it had staged such a promising looking recovery at the beginning of the year. The price was initially trading at depressed levels of $0.011150 as earlier mentioned, rallying up to $0.041000. It had gained a whopping 260%, having returned to the highest levels seen since June 2018. However, the bulls hit a large area of supply, which could have been very trend defining should a breakthrough have occurred.
Binance Adds Support for Tron Staking
The worlds largest cryptocurrency exchange by traded volume, Binance recently added support for Tron staking to its newly launched staking platform. Users of the exchange that have TRX with Binance will be able to commence their share of the block rewards produced by Super Representatives on the Tron network.
Furthermore, to launching the Tron support, Binance has reportedly voted itself into a Super Representative position, with over 59% of votes, according to data from Tronscan. Binance has become the Tron Super Representative (SR) number one by purchasing 12 bln TRX and voting for themselves under the new Tron staking rules.
Tron supporter Misha Lederman said:
The freezing of 12 billion TRX by Binance to vote for themselves as top SR has both pros and cons. A positive effect is that more than 1/6 of the total circulating supply of TRON has been locked up, and essentially taken off the market. Additionally, having major players like Binance become so deeply involved within the TRON Ecosystem gives huge recognition to the TRON blockchain and legitimate projects launched on TRON, such as BeatzCoin and Sesameseed.
Price action via the daily chart view is moving within a bearish flag structure, which appears vulnerable to downside risks. The near-term bias remains tilted for further moves lower, with targets at; $0.012000, $0.011150 and then $0.010000. Entry would be around the current market price, with stops placed just above the flag at $0.016500.