Tron Price Analysis: TRX/USD is Rocketing; Foundation Has Employed SEC Attorney

  • Tron Foundation announces hiring former SEC Attorney in a step to further understand regulatory requirements.
  • TRX/USD price has jumped 78% in just six sessions. Bulls continue to smash through resistance barriers.

The TRX/USD bulls are on one serious mission in flying high. At the time of writing in the early part of Thursday, the price was holding double-digit gains. It has now gained as much as 78%, since the commencing of this explosive move on 4th January. This all coming after a breakout of a textbook technical bullish structure. The buyers had smashed through a pennant pattern, which assisted with an increase in volume and upside pressure.

Tron Hires Former SEC Attorney

Tron on Wednesday announced a big move from the foundation relating to its compliance department. They hired a supervisory attorney, who previously served for the U.S. Securities and Exchange Commission (SEC). The announcement from Tron detailed that David Labhart, a “seasoned regulatory industry executive,” will serve his duties as Tron’s head of compliance. This is no doubt a big and bold move into gaining insight of global regulations.

The founder, Justin Sun, detailed via press release how Tron is committed to working with regulatory agencies. The Foundation wants to ensure all it does falls in line with global regulations. He said, “As the cryptocurrency space matures, investors and regulatory agencies around the world must trust that TRON has a forward-thinking. In addition, stable growth trajectory that doesn’t run afoul of any regulatory requirements.”

Technical Review – TRX/USD

TRX/USD daily chart. Market bulls managed to breakdown supply zone, $0.026000-$0.028000.

As detailed earlier, TRX/USD bulls have enjoyed an aggressive move to the upside. There was a critical area of supply that the buyers managed to overcome. This was seen tracking from $0.026000 – $0.028000 region. The price had not been above this area since 7th August 2018, when the market was in a heavy downtrend. There had been several attempts after the price fell below this zone to move back above. On occasions at the back-end of August, September and October 2018, each time dealt a rejection blow.

Keeping in mind the big moves seen of late in such as short space of time, it does leave TRX/USD vulnerable to a pullback. The first area of comfort for the bulls now, should be the above-detailed $0.026000-$0.028000 area. If this fails to hold, then a fast move back down to $0.020000 could be seen, which would see a retest of the breached pennant.

Looking to the upside, next major challenge is eyed at $0.040000 territory. TRX/USD was last seen trading here back in July 2018.

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.