Tron Price Analysis: TRX/USD is Forming a Bottom Area, Readying a Recovery

 

  • TRX/USD buyers are heavily defending the 1 cent price territory, as a bottom area gradually forms.
  • Tron foundation continues to provide positive updates and Justin Sun once again takes aim at Ethereum.

While selling pressure for TRX/USD is still somewhat intense, there are signs that a bottom area is forming. Buyers are doing their utmost to protect the 1 cent price territory, as it is just one barrier breach away from firmly slipping below. During the session on Sunday 25th November, the price was forced to a low of $0.011095. Within the mentioned area, a swarm of buying came in to stop a further fall, though efforts were short-lived. A long-legged doji candlestick did form, sparking some optimism for a recovery, although the session today saw the price once again on the back foot.

TRX/USD daily chart

Justin Sun Fires Shots at Ethereum

Justin Sun continues where possible to take swipes at his rivals over at Ethereum. Recently, he was advising for Ethereum developers to move networks, by suggesting they move to the Tron network. He tweeted, “In bear market, #Ethereum developers should migrate your token to #TRON immediately. 1. 0 transaction fee, no gas in #TRX. 2. Compatible to #ETH, 0 migration cost. 3. 2000 TPS. 4. #TRON dex listing. You can easily increase your token value 100% with High liquidity. $TRX”. As mentioned, this isn’t the first time he has fired shots at the competition, in his large marketing efforts.

Elsewhere, the Tron project is backing up all the Justin Sun tweeting after their transactions hit another record. The Tron founder said, “New record 1,841,055 Txs per day! Will break 2 million very soon!” Since the launch of the Tron decentralized application, TRONbet, there has been an evidently large improvement in performance. Daily registered transactions have grown, in comparison to its rival Ethereum. The efforts from the Tron foundation are high; as previously reported, they launched an accelerator program for developers with the goal of driving more activity to their network.

Technical Review – TRX/USD

TRX/USD 4-hour chart

As mentioned earlier, the buyers are attempting to defend the 1 cent price territory. It does remain under threat, given the persistent downside pressure efforts from the market bears. TRX/USD is running within its third consecutive session in the red. It is vital that the $0.011095 level – Sunday low – holds, otherwise a fresh amount of heavy selling pressure will be seen. The 4-hour chart view provides some relief for market bulls, as demand zone can been observed in action. A daily closure above would be encouraging for some bull movement to come.

In terms of upside targets, near-term resistance should be noted at $0.013250, the session high from Monday. An evening star candlestick had formed here, which led to a resumption of downside pressure, playing to the textbook. Looking further north, the next major challenge will be the $0.016000-0.018000 range. This mentioned area previously served as a decent demand zone; however it is now likely to give the bulls a bit of trouble as resistance. It has significance, as it provided support from mid-August, right the way up to 20th November, when it gave way to the bears.

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.