Quick take:
- The team at UpBlock has done a macro analysis of Tron in which they conclude that TRX needs to start moving soon or risk becoming a sinking ship
- Furthermore, Tron has demonstrated ‘disappointing price action and no clear movement or bullish signs’
- TRX is currently trading above the $0.025 support zone with the daily chart pointing towards more sideways
The team at Upblock has released its weekly Macro Analysis report. For this week, they analyze the three popular digital assets of Tron (TRX), EOS and Tomo (TOMO). The report goes on to point out that out of the three digital assets, Tron (TRX) has exhibited disappointing price action with no clear movement or bullish signs. Furthermore, the report warns that TRX needs to start moving soon or risk becoming a sinking ship.
Closing the list [of three], there is TRX with rather disappointing price action and no clear movement or bullish signs at the key-area of support.
TRX has to start moving very soon and rather strongly; otherwise, it will become a sinking ship.
A Crypto Wide Drop in DeFi Value Could Be One Reason Tron (TRX) is Lagging
Also worth mentioning is that the DeFi realm has been hard hit by massive pullbacks demonstrated by popular digital assets such as Yearn Finance (YFI), Compound, Just (JUST) and more. In an earlier analysis, it was highlighted that these DeFi related assets have fallen more than 60% from their all-time highs in Q3, 2020.
Just like Ethereum, Tron is home to multiple DeFi platforms such as JustSwap, Just (JUST) and Sun (SUN). These pullbacks have also had a negative effect on the prices of both Ethereum and Tron (TRX).
What Next for Tron (TRX) in the Crypto Markets?
A quick analysis of the daily TRX/USDT chart above reveals the following.
- Tron’s current value at $0.02573 is above the 100-day and 200-day moving averages but below the 50-day MA
- The 100-day moving average (yellow) is providing adequate support at the $0.025 -$0.024 price area
- Trade volume is in the red and low
- The MACD is slightly bearish although a bullish cross had occurred on October 5th
- Daily MFI is in neutral territory at 37
In conclusion and as noted by the report by the team at Upblock, Tron’s price action has massively reduced from its recent excitement in Q3. Tron had an impressive market performance in Q3 due to Justin Sun launching several DeFi projects including a Wrapped version of Bitcoin on the TRX blockchain.
From the daily chart, the low trade volume and neutral technical indicators point to more sideways and possibly a dip if Tron (TRX) does not recover its past market momentum.
As with all analyses of Tron (TRX), traders and investors are advised to use adequate stop losses and low leverage when trading TRX on the various derivatives platforms.