Trade Recommendation: TRON

TRON (TRX/BTC) is a market that is currently plummeting. However, it is at a point where it’s attractive for bottom picking.

On December 17, 2018, TRX/BTC finally took out resistance of 0.000004 after four months of accumulation. The range breakout triggered a monster run that drove TRON to as high as 0.00000863 on January 10, 2019.

Since then, TRON has been in a steep correction. In the last few days, however, it is showing signs of stability.

Technical analysis shows that TRX/BTC is not falling too far below support of 0.000004. We have this view for several reasons. First, the market has managed to stay above this level for about a week already. This is a very encouraging sign which tells us that buyers are emerging.

Also, bulls had to tap 0.000004 as resistance three times during its accumulation period from August to December 2018. Now that they’re in control of this level, they are not likely to give it up on the first tap.

The strategy is to buy at the current price level of 0.0000039. If bulls can keep the market from falling lower, they will likely generate a rally to our target of 0.000005.

The process may take less than a month.

Daily Chart of TRON/Bitcoin on Binance

As of this writing, the TRON/Bitcoin pair is trading at 0.0000039 on Binance.

Summary of Strategy

Buy: 0.0000039

Target: 0.000005

Stop: 0.0000037

 

Disclaimer: The writer 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.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.