Trade Recommendation: TRON

The TRON/US Dollar (TRX/USD) pair dropped to as low as $0.016 on August 14, 2018. At that price, TRON shed over 84% of its value from the 2018 high of $0.10041. While losses were tremendous, it appears that the altcoin’s time in bear territory is almost over.

Technical analysis show that TRON is positioning to take out the large falling wedge on the daily chart. This view comes after the market bounced off support of $0.017 yesterday, September 12. The price action tells us that participants are no longer waiting for this cryptocurrency to revisit its recent low. They are willing to buy at a higher price because they believe that TRX will significantly rise in the future.

This bullish sentiment will make it very tough for bears to keep market control. Add the fact that TRX is at the apex of the wedge and bears can see that keeping market control is almost impossible.

The strategy is to buy the breakout at $0.02 as long as the market generates volume of at least 33 million TRON units. The coin lost so much in as little as four months. Investors need to see some excitement in the market to help restore confidence. The breakout from the large falling wedge with heavy volume is a very good start.

If the market takes out $0.02, it will likely rally to our initial target of $0.036.

The process may take less than a month.

Daily Chart of TRON/US Dollar on Bitfinex

As of this writing, the TRON/US Dollar pair is trading at $0.019814 on Bitfinex.

Summary of Strategy

Buy: Breakout at $0.02 after the market prints volume of 33 million TRON units.

Target: $0.036

Stop: $0.0185 after the breakout.

 

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.