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TRON (TRX-USD) is still considered an undervalued resource in the cryptocurrency market. The coin, as we have written, is designed to be a "token" of the new decentralized Internet. Think of the people who send each other to pay their bills, but also as a game or in-app currency. It could be used to donate small donations (think like a quarter of a penny) to an article or an infographic created online.
The team worked hard to create value for money, looking for ways to adopt it after migrating to its Mainnet. Without a doubt, the market is waiting for this asset to show if it is worth investing in the long run. Here is the long-term analysis for TRX / USD starting September 25, 2018.
Basic Outlook
TRX continues to ride on the positive news of the last few weeks. CEO Justin Sun seems to have taken his recent difference of opinion with the co-founder of Ethereum Vitalik Buterin to a whole new level. In a recent statement, he asked developers of decentralized apps to take their work away from Ethereum and take them to the TRON network. This has undoubtedly raised the stakes on which network will become the network of preferred decentralized applications (dApps) in the future.
With Sun throwing down the gauntlet, TRX will have to take a step towards the pot to keep its promises. So far it seems to be moving in the right direction; see new trading pairs launched and an initial momentum in attracting these decentralized applications.
Technical perspectives
Below is the long-term chart of TRX / USD as of September 19, 2018:
TRX / USD weekly chart: 19 September 2018
From the last technical analysis provided for this pair in August, a series of changes have been observed in the price table that reinforce the technical conviction that the price of TRX / USD is preparing for an upward breakout . Here are some take-aways from the graph shown:
- The price highs and the lowest prices are each limited by trend lines, which form a wedge-shaped model that falls. This pattern usually resolves with a bullish price break above the upper edge of the wedge.
- A number of doji models have been formed in the last two weeks of trading. A doji means indecision, but in a market that has generally been bearish, it is significant as it indicates that the selling pressure has declined significantly.
- The On Balance volume indicator is currently facing down and could form a new trough.
The scenario you expect to play here is simple. If the second trough formed by the OBV indicator fails to reach the oversold levels, it will form a "failed swing" pattern, showing progressively higher lows. There is still some space to accommodate further downward price movement towards the lower wedge trend line. If this downward movement occurs and freezes at the trend line while the OBV progressively forms higher lows, a divergence scenario would have occurred.
If the divergence occurs as described, then the price action will have sufficient reason to push upward from the lower edge of the wedge trendline that falls and pushes upward, at least to the border. opposite to. The price candle will then have to close above this upper edge of the trend line so that the price can completely come out of the wedge. The positive news for TRX will help this move to come.
Commercial scenario
Fast forward a week, and the weekly TRX candle actually broke above the upper trend line and closed above it. This is a long-term game.
Price correction upward of the divergence mentioned above is still very important. After the breakout, the price of TRX / USD should return to the broken trend line and bounce back from there. This pullback is already happening, driven by a weaker opening to the week by Bitcoin. This is because the trend line will perform a role inversion; from resistance to new support.
Possible moves of the price
So, what would be the prospects for the TRX / USD pair going forward?
A bullish reversal is very much on the cards, with the price being broken by the falling wedge. The positive news announce further upward movements. However, it is important to follow what is happening with Bitcoin and other cryptos, as the cryptography market has proved to be one of the most related markets.
Market sentiment:
The long-term, medium-term and short-term prospects of the TRX / USD pair are:
- Long-term – bullish (could change soon)
- Medium-term – bullish
- Short-term – neutral
Note: this analysis was performed on a weekly chart. It takes a whole week to form a candle, so these moves may take several weeks. Entries should be made on graphs with shorter time interval as the daily chart.
Revelation: We are / are long TRX-USD.
Communication of business relations: This article was written in collaboration with an analyst; nobody involved has any relationship with Tron.
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