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In the year 2019, the small cycles of artificial bulls of the main cryptocurrencies such as BTC, ETH, XRP, TRX, ADA, LTC and EOS are those that really generated attention.
In this case, there are two important categories: ‘first to pump’ cryptos and ‘late to the party’ cryptos. Its main difference is that the latter are usually the ones with the highest capitalization, such as BTC and ETH.
The first group, on the other hand, are the lowest capitalization currencies within the group of the most important altcoins. These coins are easily moved due to the need for less money to start some artificial pump and attract the attention of the retailers.
Money begins to flow from within the market, while the new money from the big players is the most difficult assets to move (BTC and ETH).
An example of the above is shown in below in the TRX graph. February 6th is the time when TRX reached almost the peak of its bullish phase. Tron (TRX) is a ‘first to pump’ coin, starting in December ahead of many as displayed in the chart.
This is how an artificial bullish rally is defined from an organic rally. The level of TRX in the 6th week was the same as when BTC had the price of $ 7000. The total capitalization of the market at this point exceeded $ 240 billion.
This coin was artificially pumped and there was no solid evidence to confirm that it was an organic movement. TRX pumped fully on February 6 and the money later flew literally from TRX to another asset: LTC.
Subsequently after BTC has been tested and taken over by the whales to create new positions, the movement of money from TRX → LTC → ADA finally went to BTC and the cycle seems to repeat itself again.
At the time of writing Tron seems to be pumped again by large merchants in part to have more money through selective pumping, and then a forceful boost of BTC and ETH will follow since they require more money than the rest of the altcoins to generate important changes. On the other hand, the advanced upward scenario seems to be due to important news around Justin Sun and his project.
In our previous post we indicate the following scenario for TRON .
At this time, writing TRX seems to be trying to avoid the stipulated correction of point ‘D’ and we could witness an advance of the bullish scenario planned for May 2019. The remarkable thing about all this is that whatever the scenario, next month looks very bullish for the cryptocurrency and this can be verified with its historical RSI values that are the best indicator to correlate movements of altcoin prices.
Correlation of Price According to RSI.
Tron (TRX) presents historically, a series of important milestones in terms of maximum / minimum prices and a direct relationship with the buying / selling sentiment as well as market pressure for the cryptocurrency, as we can see in the following figure of 1D for TRX with the RSI indicator.
In this graph we appreciate the expected levels of Resistance and its immediate support in the chart for the worst bearish scenario.
As of February 4, 2019 Tron (TRX), in general, was reaching lower levels, which are the textbook definition of a strong bearish trend. Because the trend at that time was not strong, a large price movement for Tron (TRX) in March 2019 was not anticipated.
Tron (TRX) in March 2019, was trading below its exponential moving averages of 20 days and 50 days, and the level of $ 0.028 seemed to be a strong resistance.
Similarly, it is easy to appreciate that logically after any price increase reflected by the purchase pressure on the asset, the RSI indicator generated in the chart is at levels greater than 70. In this indicator, we can see the time line between a Bullish sentiment and the next most immediate.
Analogously, the opposite scenario can be seen, that is, bearish feelings of the altcoin and its estimated timeline.
With this information, it is possible to compare and average stipulated dates of the next important price change to occur. Given the scenario of April 24 and a minimum RSI in price, we would have the following data:
From the above, we can see that the next bullish change (possibly in progress) would generate a 54.27% boost in TRX prices from our current analysis price.
If this is taken to the graph, it coincides in line and time with our Elliot Wave projection on the third wave. So we would have a price boost for Tron (TRX) of up to 73.12% by the end of May, an excellent profit for an average investor who bet at the entrance on April 26, date of our published projection.
What To Expect From TRON (TRX) for the End of April 2019.
However, the month of April is not over yet and we have to wait and see if Tron meets certain expectations to make that projected leap.
The exponential moving averages of 20 days and 50 days are flat and this indicates a loss of momentum and a continuation of consolidation. The failed upside break suggests that there is selling pressure, especially near the $ 0.02466 reward zone.
There is also a strong resistance zone at $ 0.02580. If selling pressure resumes, then the low price level of $ 0.02108 formed at the beginning of March 2019 is a potential target. But since the trend is very weak, we estimate that the lower Bollinger band at $ 0.022 should remain at support.
In conclusion, Tron (TRX)’s current trend is not strong, and a break up or down could soon occur, since there is now a mixed image. Obviously, our calculations indicate that the break is up, but as we know, the crypto world is highly volatile and any scenario can not be ruled out.
However, we do not see a profit of 73% so crazy, since Bitcoin needs strength to move and that strength comes from massive pumping by whales in ecosystems.
Fundamental Analysis of Tron (TRX)
Like any price analysis, it is also important to consider certain external factors that may influence the cryptocurrency for its price recovery, or in the worst case for the depreciation of the asset.
In the case of Tron (TRX), it is no secrete that it has media impulse from its founder and creator, Justin Sun, especially for his character of ‘influencer’ within the world of cryptocurrencies. In addition is his creative reason to innovate and call the attention of the crypto space towards its ecosystem.
Recently there have been rumors of TRON partnering with ChainLink, which has increased the value of TRX. This partnership would help the users experience smart contracts based on real-time signals, which would make the network even more desirable.
Justin Sun is planning on giving away 20 million USD in cash as an airdrop after giving out two Tesla motors, this, in return created an astounding number of followers in a short duration.
Tron (TRX)’s hard fork has finally gone live on 28th February 2019, with the Odyssey v3.5 upgrade, with 3 TRON protocols (TIP12, TIP 16 and TIP 17) going live, too. After the hardfork happened, TRON released another upgrade for TronGrid 2.0, which enables affordable and easy ways for developers to build Dapps.
TRON Now has around 1.9 million TRX wallets with around 1,978,032 accounts on the Tron network.
Recently Justin Sun labeled TRON as the “Ethereum killer” as TRON Dapps dominates the decentralized apps marketplace. TRON is focusing on another significant leap into a brighter and more prominent future by announcing the update to Odyssey version 3.1 that was achieved with the general community consensus.
The new update would introduce the overall better performance regarding smart contract operations to the network, stressing on the fact that the new update should be most appealing to the users and developers of decentralized applications.
TRON’s partnership with BitTorrent and starting with a new ICO, which is already six times its ICO price, also created a positive impact on TRON’s price. BTT token got sold out on Binance’s launchpad in less than 14 minutes.
BitTorrent hype has evidently pushed TRON (TRX) upwards, as it has been seen to outperform other cryptocurrencies. Also, some market experts are linking the rate of TRX’s price growth to the Chinese New year.