Justin Sun, Tron’s founder and CEO has become something of a crypto-celebrity and charismatic leader. As such, people react to him in a binary way. They either love him or hate him. But even if you hate him the values, ambitions, and aims in the Tron project can’t be just put aside. The project has achieved a highly scalable network thanks to the introduction of Super Representative nodes, and the choice to use the Proof of Stake algorithm (not Proof of Work, as Bitcoin).
And then, there’s the Tron Virtual Machine (TVM). That’s where Tron’s value proposition really is. It’s not been online even for a full year yet. It’s compatible with Ethereum’s (which allows developers to kill two birds with a single stone) so it’s quite an attractive tool to use.
If you add Tron’s incentives for developers (such as Tron Arcade), you’ll quickly understand why so many Ethereum projects are moving to Tron or deploying their apps in both networks simultaneously. And we’ve not mentioned yet scalability, speed and gas price, which have become a severe problem in Ethereum over the last months.
Then, if you take into account the fact that the Tron Foundation now owns BitTorrent, it’s even easier to understand why Tron fans are very optimistic about the project as a whole, and bullish on the TRX token.
Tron’s price analysis
So it’s clear that Tron’s fundamentals are robust. Probably more so than any other blockchain project in the world. Except for Ripple and Cardano, perhaps. And yet the coin’s price remains undervalued and under pressure. It lost about 2% over the last week. The good news is that the candlestick analysis points to a bull market, despite the loss in value.
Tron presents a bullish breakout pattern with prices fluctuating from 2.1 to 3.1 cents. The current level is around 2.5 cents. That’s neutral but bullish.
On last April 25th, and the following day, there were signs of a double-bar bullish reversal pattern that could be confirmed if there’s a strong move beyond April 30th’s highs. If that should happen, traders will be able to load some tight stops up at April 30th lows and expect to reach the long-awaited 3.1 cent level. But this trend can only consolidate if prices close above the 3.1 level consistently.
Technical Signs
Tronix (TRX) remains flat at 2.4 cents per token. But the market will stay in the bull’s hands as long as the price doesn’t go below 2.1 cents. The wave that could take us to 3.1 cents will need high trading volumes. The opposite is exact as well. Namely, if TRX were to go down and lose value below the 2.1 level, that would also need very high trading volumes from the bears.
So that’s how the market looks int he short-term, for those who like to make a buck by trading positions that don’t hold for more than a few hours or a couple of days at the most.
The thing to keep in mind, however, is that in a project with fundamentals as solid as Tron’s, the market will catch up sooner or later and the coin’s price will take off. We don’t know when that will happen; it should have taken place already if you ask us, but it surely will. Maybe a bit of good news or hype will trigger it, it will perhaps be more organic. The important thing is to keep an eye out for Tron’s performance.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.