Tron Price Analysis: TRX/USD Under Pressure Despite MoU Splash with South Korean Gaming and Blockchain Associations

  • Tron has recorded losses for the past five consecutive sessions, dropping as much as 15%.
  • The Tron Foundation sign Memorandums of Understanding (MoUs) with two massive gaming and blockchain associations in South Korea.

TRX/USD: Recent Price Behavior

The Tron price continues further cooling and is currently running at its fifth consecutive session in the red. TRX/USD has dropped around 15% within the mentioned period, and there is scope for further downside. The pick up in selling pressure came after a break of a vital daily ascending trend line. The support had been providing comfort to the price within the back-end of December 2018.

Tron Signs MoUs With South Korean Gaming and Blockchain Associations

Tron’s Head of Business Development Roy Liu has managed to sign Memorandums of Understanding with the Korea Mobile Game Association (KMGA) and the Korea Blockchain Contents Association (KBCCA). This MOU gives Tron a footing in the 4th largest gaming market in the world. In South Korea, gamers spent $5.6 billion in 2018 alone.

KBCCA representatives previously openly expressed their liking in Tron’s investment in SMEs that develop either blockchain or games. The development further marks a considerable step for Tron, as it continues to make a mark within the gaming sector, further legitimizing its strong ambitions to be a leader within the industry.

KBCCA commented following its agreement with Tron:

“We want to create an environment in which Tron can actively invest in small- and medium-sized South Korean blockchain and gaming companies.“

Back in November last year, Tron certainly raised some eyebrows with the announcement of their gaming fund. It unveiled TRON Arcade with up to $100 million for investment into the project over three years. The primary goal of this fund is to empower developers to create and execute on their ideas. They are also keen on the introduction of new games and content into an autonomous ecosystem, in addition to building a community.

Technical Review – TRX/USD

TRX/USD daily chart.

Given the current momentum observed to the downside, eyes must now focus on the next critical areas of support. The first level of interest is $0.02150, which was the low area between 13-14th January. Further to the south, then eyes will be on the $0.01800 territory where the price consolidate. This was seen between the back-end of December to early January. Any failure of this holding will expose $0.01600, which is a daily area of demand, followed by $0.01150, which was the 2018 bottom area.

In terms of resistance, a retest of the breached ascending trend line could still be seen, which is tracking at $0.02700. An active area of sellers remain from $0.02600 up to $0.031500; the price has not traded comfortably above this zone since July 2018. Aside from this then there isn’t too much in the way of $0.04000.

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.