- TRX delivers some sideways price action as sell pressure fades.
- Tron’s latest announcement underscores the potential for more Dapp development.
The last time we looked into TRX’s performance we observed that it had embarked on a retracement. TRX bears are now slowing down but will the bears take advantage or is this a pause before giving in to more downside?
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TRX bottomed out at $0.075 in the first week of August. This new bottom range represented almost a 20% dip from its $0.094 in July. While this price drop represented a significant discount, there are days where prices dip or rally by higher margins even in a day.
Bearish dominance has been showing signs of a slowdown in the last few days judging by the sideways price action. TRX traded at $0.076 at the time of writing. Some key observations align with the slowdown in sell pressure.
For example, the price appears to have found support at the 0.62 Fibonacci retracement level.
Source: TradingView
Previous Fibonacci retracement levels have shown a high probability of yielding a pivot. So will this be the case with TRX at its current price level? Well, its Money Flow Index (MFI) recently curbed its downside as well. However, it also doesn’t indicate a bullish accumulation.
On-chain data revealed that there were some bullish expectations in the last few days as selling pressure tapered out. The weighted sentiment metric shot up between 6 and 7 August but then again we also saw a surge in negative funding rates. This suggested that there was a surge in short positions, hence the bearish expectations.
Source: Santiment
A short position surge indicated that the sentiment in the derivatives market could fuel more downside. However, that might not necessarily be the outcome if whales start buying at recent discounted prices. The subsequent bullish momentum might lead to liquidations, hence pushing prices up significantly.
A look at Tron’s latest development
Can Tron’s latest announcement stir up some more confidence? The network recently revealed that it is one of the first blockchain networks to embrace Huawei’s WEB3 Node Engine Service. Huawei has a long track record of involvement with mobile technologies.
#TRON is one of the first #blockchains supported by @Huawei! ?
As one of the earliest recipients of their Web 3.0 Node Engine Service, #TRON has already assumed an essential role in the global payment industry. ?
With our sights on Hong Kong and Japan, we will continue to… pic.twitter.com/UmfagDXSCf
— TRON DAO (@trondao) August 8, 2023
Read about Tron price prediction for 2023/2024
Huawei Cloud reportedly created the WEB3 NES service to connect developers to main blockchains. It was also designed to facilitate resource management on blockchain networks. The development means developing dapps might become significantly easier.
Tron hopes to attract more developers and hence more potential growth thanks to Huawei’s NES service.
