- Tron prices slow down as TRX slip to ninth
- BitTorrent (BTT) could be capping TRX demand
- Transactional volumes are low and well below 42 million of Feb 4
Even with low volumes, we retain a bullish outlook on Tron (TRX). It is likely that the decision to reward BitTorrent seeders with BTT and not TRX is behind recent price shrinks.
Tron Price Analysis
The acquisition of BitTorrent by the Tron Foundation promised to be—and is still is—a massive move by a blockchain start-up whose primary objective is to decentralize the web. Besides this noble goal, Tron has a hand in distributing and making entertainment free for all. BitTorrent has been doing that since 2014 and marking their influence is a huge base—upward of 100 million and 170 million monthly active users.
Three weeks after a successful ICO, TRX prices have been slipping. The coin’s performance pales in comparison with that of others as BNB for example. Because of Changpeng Zhao’s vision of building a DEX where fees and rewards will be payable in BNB, the coin’s demand is surging. It is not the case for TRX.
Unlike Binance, Justin Sun and co took a different business model that of rewarding users with BTT and not TRX. As a result, we are not witnessing a mismatch in performance. As a working platform, BitTorrent and BTT did hit the ground running and at spot rates, it is outperforming TRX and BNB. However, it would have been a different story if TRX was the coin for rewarding and incentivizing seeders.
At the time of writing, TRX is changing hands at 2.45 cents and down to ninth in the liquidity and market cap table. The slowdown is mostly because of the unexpected lag of TRX prices. All the same, we maintain a bullish outlook as long as Tron (TRX) prices trend above 2.5 cents. Note that TRX is technically up.
In a three bar bullish reversal pattern of Feb 14-18, we might see a build-up of demand finally thrusting prices above 3.1 cents as risk-averse long positions are activated. In the meantime, risk off traders can buy on dips with first targets at 4 cents as mentioned in our last TRX/USD trade plan.
Feb 4 high volume bar—42 million anchors our analysis. Evidently, market participation levels have been tapering and even on Feb 18 when most coins were registering above average performances, TRX volumes were quite dismal. With firm buy triggers at Jan 27 highs—3.1 cents, only high volumes above 42 million would reaffirm bull trend continuation of late Dec 2018.
Let’s block ads! (Why?)