Tron Price Analysis: TRX/USD Bears Force a Significant Break of a Vital Supporting Trend Line

  • The Tron price is running at its fourth consecutive session trading in the red.
  • TRX/USD bears manage to break down a long-running ascending trend line of support.

TRX/USD Recent Price Behavior

TRX/USD has been further cooling within recent trading; the price is running at its fourth consecutive session in the red. At the time of writing, during the mentioned period with the run of losses, it has dropped some 13%. This breakout is now coming after trading within a sideways nature, which represents a failure of commitment from either buyer or seller camps. Given the length of time that they above-detailed was seen, it isn’t too surprising seeing the intensity of this current downward move.

BTT Token Airdrop Has Begun

It has been an exciting week for both Tron and BitTorrent token holders, as Monday saw the commencing of the BTT airdrop. Holders of TRX should have started to receive their BitTorrent Tokens following the official launch of this first airdrop. The Binance Launchpad platform does the management of the airdrop. The network has the intention to run the airdrops for a lengthy period of six years. TRX holders were rewarded at the first airdrop with 0.11 BTT for every 1 TRX held.

Furthermore, airdrops are scheduled to occur monthly, right up to February 2025. The intention behind the BTT tokens is to stimulate growth on the decentralized peer-to-peer platform, BitTorrent. As a recap, in June 2018, Tron acquired BitTorrent for a reported figure of $126 million. There was a total of 990 million BTT issued on the Tron blockchain, with 10.1% of those allocated for airdrops.

Lastly, further to the first BTT airdrop, Tron founder and CEO Justin Sun announced via Twitter that he has a secret Valentine’s Day surprise for Tron and BitTorrent. He said, “We’ll have a secret campaign released on Valentines Day for TRON and BitTorrent! Numerous celebrities will be on board. FYI, one of the main character in Friends, one winner of 3 golden globe awards & one winner of 4 SuperBowl titles”.

Technical Review – TRX/USD

TRX/USD daily chart.

The TRX/USD price has been forced to give up vital support. The push to the upside observed from December 2018 through the early part of this year was very much supported by the now broken support. It was an ascending trend line, which started to take form from 21st December. This had provided necessary comfort in the bulls move north on several occasions.

Moreover, given the particular breach, this could put the $0.02000 price region at total risk; eyes are now on the next major area of comfort. Firstly, daily support noted around $0.024000-$0.023000 range; this was in action between January – February. A failure of this holding may then see another wave of selling pressure come into play, forcing a breach of $0.02000. Lastly, move back down to the $0.018000 area, where the price briefly consolidated between 22nd December 2018 – 1st January 2019.

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.

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.