Tron Price Analysis: Despite Hard Fall, TRX/USD Forming a Bullish Flag Pattern

  • The TRX/USD price is under pressure after the big 48% bull run seen last week.
  • Justin Sun goes head to head with Ethereum’s Vitalik Buterin, boasting of huge transaction volume.

Tron Ecosystem Growth

Tron continues to see solid growth, with data to back it up. The foundation’s Dapp ecosystem is expanding in a strong and steady fashion. Further Dapps were seen to have launched with additional partnerships being reported, as detailed within their latest weekly Dapp report.

Looking at the data, the past week had seen a decent improvement in comparison to the last. There was a total of six Dapps that were added to the Tron ecosystem over the most recent period. In terms of transactions, these increased by 11%, while the accounts growth was up 6%.

While Tron’s recorded numbers look very much impressive, its rival Ethereum saw less impressive growth. In terms of data available via EtherScan, the total reported pending transactions on Ethereum, had surpassed the 90,000 mark. This further demonstrates that congestion has intensified.

Justin Sun vs. Vitalik Buterin

The Tron founder Justin Sun and Ethereum creator Vitalik Buterin went head to head on Monday as they exchanged words via Twitter.

Sun was gloating at the fact of how much Tron’s daily transactions dwarfs the activity seen on the Ethereum network. Sun tweeted, “We can talk about the dollar sign after the day #ETH reaches 2 million Txs per day, which I think will never happen”.

Around two weeks ago, Sun had tweeted about the growing strength of activity seen in the Tron network, noting, “New record 1,841,055 Txs per day! Will break 2 million very soon!” Judging by the latest exchange of words with Buterin, this may be more or less there now.

Technical Review – TRX/USD

TRX/USD 4-hour chart

A decent bull run was seen from 27th to 29th November, where TRX/USD gained a chunky 48%, moving to a high of around $0.01715. Since then, the price has largely cooled, after running into a prior strong demand zone. This was running from $0.01600 up to $0.01800; it had supported the price from August until November. Clearly now this area is acting as a new form of resistance.

Looking to the downside, TRX/USD has retreated back towards a demand area, where the price recently bottomed on 25th November. This support can be seen from $0.01350 down to $0.01115, protecting that big 1 cent figure.

Despite the easing in TRX/USD, which is seen down as much as 8% on Monday, it has formed a bullish flag pattern. This began to take shape on 29th, during this move south. A set up which does stack in the bulls favor, momentum would likely be triggered on the break of $0.01500, the upper trend line.

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.

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.