TRON is a leading decentralized protocol that offers smart contract facilities with proof of stake consensus. The native coin TRX was in an uptrend before the FTX liquid crisis stirred the crypto markets. Investors were selling their stakes out of panic.
As a result, many tokens formed new yearly lows, some of them regained the previous level, but most cryptos are trading around the 52 weeks low. TRON is not an exception; it has not regained the previous short-term support of $0.06, but it is trading above the 52 weeks low of $0.0448.
TRX Short Term Price Analysis
While writing this analysis, the price of TRX is trading around $0.054. After taking support around $0.05, it is in an uptrend, but it is tough to predict how long TRON’s price will sustain. The sentiment looks optimistic because candlesticks are forming above the baseline of the Bollinger Band, while most other technical indicators are bullish, which suggests an uptrend toward $0.06.
We do not think it will break the previous support in the next few weeks. Indeed, $0.06 is a crucial level because now it is working as a resistance for the short term. The candles may consolidate between $0.05 and $0.06.
After hitting an all-time high, it was in a downtrend in the first half of this year. After that, it changed the momentum in June-August and later consolidated till October. The FTX liquidity crunch suddenly changed the momentum of the crypto market.
Should You Invest in TRON (TRX)?
We think you should invest at the current price with a target of $0.061 which will work as a resistance. However, you can wait a few more days if it breaks the resistance. On the other hand, it is also a good time to accumulate TRX long-term if you treat it as a digital asset.
TRON has a wide range of use cases and a limited supply of tokens (71.6 billion are in circulation out of 100 billion), so it will sustain itself in the long term. TRX must be part of your portfolio, but you must be conscious until it breaks the $0.08 on the long-term chart.
Please remember that the FTX liquidity crisis is under investigation, so any significant news can disrupt the fundamental and technical analysis for the short term; so you should maintain a trailing stop loss if you are interested in a short-term gain. Please follow our website to get the latest update on TRON.
Comments are closed.