Technical Analysis and Market Entry: Tron Wipes Out Yearly Gains With Further Downside Eyed 

TRON
  • Tron’s price is vulnerable to further selling pressure following a break below a key demand zone.
  • TRX/USD has erased all of its 2019 price recovery after looking so very promising. 

TRX/USD: Recent Price Behavior 

The Tron price has been attempting to find firmer footing, as it has been under pressure generally over the last seven weeks. TRX/USD has fallen from the heights of $0.040000, down to the recent lows, sub $0.02000. The price hit its lowest level since December 2018, proving the significance and intensity of the current bearish trend.

TRX/USD has erased the recovery for 2019, which did look promising. The price had rallied over 100% from the start of the year before completely running out of steam and losing upside momentum. The downside selling pressure had picked up some pace following the breach of a critical ascending trend line. It had been supporting the price from 11th May, until it was broken on 27th June.

Furthermore, most recently, a critical demand zone has been broken, which tracks from $0.02300 to $0.020800. The price had not been below the noted area since the very start of 2019 when upside momentum was starting to pick up. The noted territory has, on several occasions, provided needed comfort for the bulls during their recovery mode. Given the daily break below, it has left the control back within the market bears favor.

TRX/USD daily chart.

Tron Releases V1.0 Code for Sun Network

The Tron Foundation recently announced the release of a sidechain scaling solution, which is known as the Sun Network, as reported in a blog post.

Tron has released the V1.0 code for the Sun Network, which is a scaling solution designed for enhancing activity on the network. Furthermore, the new first version is to accommodate apparent unlimited scaling capacity on the Tron mainnet.

Additionally, it is suggested that DApps will consume less energy and be able to run with greater security and efficiency on the network.

The official blog post detailed:

“The overall solution of the Sun Network will provide unlimited scalability to the Tron MainNet. It will allow for more possibilities to the development of Tron DApps and the entire ecosystem. The solution also strives to bring positive impacts to the whole blockchain industry while flourishing the Tron network.:

Trade Recommendation

Given the earlier noted breakout of a key support zone, the door appears to have been left open to further downside pressure. In terms of targets, $0.01700, $0.01300 and then finally $0.011150 should be eyed. Stops would be placed just above the recently breached demand area at $0.025000; enough breathing room has been left in case of short-lived spikes higher.

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.

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.