- Bears are focused on breaking the strong support level at $0.025
- There is still a level of uncertainty surrounding the TRON project
- TRON has partnered recently with decentralized aggregator 1inch.exchange
The price of TRON (TRX) has weakened from $0.049 below $0.027 in less than three weeks and the current price stands around $0.0266. The main reason for this is a low transaction volume and there is still a level of uncertainty surrounding the project.
Fundamental analysis: There’s still a level of uncertainty
The price of TRON (TRX) has been moving in a downtrend last several weeks and for now, there is no signal of the trend reversal. TRON is a blockchain-based entertainment content sharing platform that has its own cryptocurrency known as Tronix (TRX).
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This platform allows users to create content, websites and applications without having to rely on centralized services. According to estimates, TRON could transform the global entertainment industry and it is important to mention that lots of technical specialists are already supporting the TRON network.
TRON is constantly adding new clients but there’s still a level of uncertainty surrounding the project. TRON has partnered recently with decentralized aggregator 1inch.exchange to add support for TRC-20 tokens. This is the first major DeFi partnership that will help the growth and improve price accuracy for trading.
It is also important to mention that the price of TRX is correlated with the price of Bitcoin and investors in this cryptocurrency should also have Bitcoin on their “watch list”. Before three weeks, Bitcoin weakened below the important $10,000 level for the first time since late July.
This certainly had a negative influence on the price of TRX and since then, TRX is not able to recover above the $0.040 resistance level. Another important reason why this cryptocurrency has weakened in September is the fact that investors believe that there are lots of other cryptocurrencies with bigger potential and with less risk.
On the other side, some analysts say that this cryptocurrency has a positive long term outlook because TRON is an ambitious project dedicated to building the infrastructure for a truly decentralized Internet. Investors in TRON should have in mind that this is a still very risky cryptocurrency but now could be a good time to trade TRON (TRX).
Technical Analysis: If the price jumps above $0.030 it would be a “buy” signal
When we take a look at the chart above ( one year period), we can see that the price of this cryptocurrency has advanced from $0.015 to $0.049 and after that started to fall. The current resistance levels are $0.030, $0.035 and $0.040, $0.025 and $0.020 represent the strong support levels.
If the price jumps above $0.030 it would be a “buy” signal and we have the open way to $0.035. Rising above $0.035 supports the continuation of the bullish trend and the next price target could be located around $0.040. On the other side, if the price falls below $0.025 it would be a “sell” signal and we have the open way to $0.020.
Summary
TRON is a blockchain-based entertainment content sharing platform that has its own cryptocurrency known as Tronix (TRX). According to estimates, TRON could transform the global entertainment industry and it is important to mention that lots of technical specialists are already supporting the TRON network. The price of TRX has been moving in a downtrend since the beginning of September and for now, there is no signal of the trend reversal. There is still a level of uncertainty surrounding the project but if the price jumps above $0.030 it would be a “buy” signal.