Tron Price Analysis: BTT Token Sale Marked By Sharp TRX Price Declines
- Tron prices drop 11.7 percent
- BTT token sale in progress at Binance Launchpad
- Transaction volumes pick up, bulls still in control
Asset prices may be dropping, but TRX is still a top performing coin. It is up one spot in the liquidity ranking displacing XLM as the eighth most valuable. While sellers are firmly in control, we expect support at 2.5 cents before prices snap back to trend and rally to 4 cents.
Tron Price Analysis
Fundamentals
There has been a reshuffle, and TRX is now the eighth most valuable coin. However, with thin margins separating TRX, Litecoin, and XLM, this was bound to happen. Going forward, we expect a TRX—LTC flip as the gap between the two stands at $60 million. Litecoin’s market cap is at $1,835 million while TRX’s stands at $1,776 million.
Behind this reasoning is increasing demand stemming from BTT token sale. Investors willing to invest and contribute towards tokenization of the BitTorrent protocol must do so only if they own Binance Coin (BNB) or TRX. Owners of these two coins can buy BTT, and if they choose not to, they will receive an Airdrop from Feb 11.
Combined with BTT purchase requirements and demand for TRX—one of the top performers in the top 10, chances are TRX valuation will inch higher displacing LTC in the process.
Candlestick Arrangement
Coinciding with BTT token sale, TRX is marking the date by dropping a massive 11.7 percent. As a result, we now have a double bar bear reversal pattern in the midst of a bullish trend.
Although we are net bullish on TRX, we expect prices to continue dropping in the next few days as it has been the case every time Tron announces a significant event.
Even as TRX shed, we expect support at the main support line of 2.5 cents. If not, the worst TRX prices can retest before resuming trend is 2.1 cents or the lows of the double bar bull reversal pattern of Jan 13-14.
Technical Indicators
Technically, the path of least resistance is upwards. Propping this position is price action and accompanying trade volumes of the last few days.
While holders contend with a wave of bears, we are net bullish. Part of this is because today’s drop is at the back of low volumes—23 million versus 15 million, which is less than 50 million versus 35 million average of Jan 14.
The only time our bullish stance will be shelved is when there is a near perpendicular drop fuelled by abnormal volumes exceeding 50 million or 95 million of Jan 10.
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by Dalmas Ngetich on January 28, 2019 at 11:30PM