Cryptovest
Published Jul 31, 2018 12:36PM ET
Tron Technical Analysis: (TRX) Celebrates 1 Year Anniversary but When Will the Party Arrive?
Today Justin Sun and the Tron team celebrates its 1st year anniversary. This month has been a hugely productive time for Tron, with a host of recent technical developments, milestone achievements and new partnerships.
Earlier last week, the project officially confirmed the acquisition of BitTorrent as part of their vision to ‘decentralise the web’. Yesterday, Tron also released the beta version of their new virtual machine, TVM, which will execute all smart contracts and support dApp development on the Tron network. There was also an announcement that Tron will be developing a new Chrome extension plug-in called ‘TronLink’. Finally, the ‘secret project’ that many had been waiting to hear about turned out to be a new integration of the recently acquired BitTorrent network, dubbed ‘Atlas’. This aims to combine BitTorrent’s existing protocol with Tron’s network to allow millions of users to create and share content across one of the world’s largest and already well-tested platform.
This flurry of promising updates, however, has not been reflected in the price of Tron’s native TRX token, which migrated away from the Ethereum network last month. Right now the asset is down -4.49% against BTC and has begun traveling sideways along the base support beneath, still pinned inside a falling wedge pattern.
In the 2hr TRX/BTC chart, we can see that Tron is still bearish and struggling to find bullish support despite the recent wave of new announcements. The first challenge will be to break back over the base support level at 440 Sats, to allow the bulls to rest before testing the upper pattern resistance. If momentum fails here, then it is likely that TRX will continue downward towards the secondary base support at 410 Sats.
In the meantime, trading volume continues to thin as investors migrate away from the project, perhaps choosing to withdraw into Bitcoin, which has been gathering a lot of momentum and hype over the last few weeks.
h2 The Story Now/h2Looking at a number of indicators we can see some positive signals beginning to appear that might be suggesting that TRX is about to exit out of this bearish cycle.
There are, however, still a few bearish indicators that are hanging over the asset which we will need to see improve before assuming a reversal is about to happen.
All price targets are set from the 437 Sats mark where the asset is currently valued.
Price Target 1: Looking at the indicators, momentum seems the finally be favoring the asset. Once TRX returns over the 442 base support line, the bulls should start to eye the 460 resistance as their first target (5.28% ROI).
Price Target 2: The first main resistance at 470 Sats will be their next goal, which if achieved, should give bullish traders a good foothold to begin recovering all the ground lost over the past three months. A return to this level will deliver a 7.73% ROI overall.
Written By: Cryptovest
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