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Tron [TRX/USD] Price Analysis: Cryptocurrency falls prey to bear as price continues to fall

Akash Anand



Tron [TRX/USD] Technical Analysis: Cryptocurrency falls prey to the bear as price continues to fall
Source: Pixabay

The cryptocurrency market and its erratic behavior put a lot of investors and users on the edge of their seats as coin prices and market cap both failed to beat the bear market. Popular coins like Bitcoin [BTC], Ethereum [ETH] and Tron [TRX] witnessed sideways price movement, despite updates and developments in the field.

1 hour

Source: TradingView

Tron’s one-hour graph showed a downtrend caused by the market’s continued sideways movement. The downtrend resulted in the price falling from $0.024 to $0.023. The support was at $0.021 while the resistance was holding at $0.024.

The Parabolic SAR was above the price candles, a clear bearish sign. The SAR displayed a mix of both bearish and bullish signals in the long run.

The Awesome Oscillator indicated a lull in market momentum as the amplitude of the graph was stalling.

The Chaikin Money Flow indicator on the zero line, meaning there was an equilibrium between the capital coming into the market and the capital leaving the market.

1 day

Source: TradingView

The one-day chart for Tron showed a picture that was opposite to the one-hour chart. The uptrend lifted the price from $0.013 to $0.022, while the long term support was found at $0.0126.

The Bollinger bands showed a slight divergence as the price breakout was in the bear’s favor.

The Relative Strength Index crashed towards the oversold zone, as the selling pressure was much higher than the buying pressure in the market.

The MACD indicator was below the histogram after the signal line and the MACD line underwent a bearish crossover. The MACD histogram was almost zero which reflected the sideways movement of the market.


Both the one-hour and one-day charts suggested that Tron will continue to stay in the bear’s territory, a stay marked by sporadic bull rises.

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JP Morgan: Big banks stand corrected as Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise




JP Morgan: Big bank stands corrected at Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise
Source: Pixabay

Big banks are riding a FOMO wave as the Bitcoin bull-run is just beginning. Spearheaded by the changing colors of JP Morgan, which recently forayed into the digital assets world, the banking elite is now suggesting that their initial stance on Bitcoin and the larger cryptocurrency world might have been off.

A recent chart by JP Morgan shows the current BTC price veer upwards chiding the “intrinsic value” the big bank placed on the virtual currency.

Based on the article by Bloomberg, the price of the coin would reverse towards the end of December 2018 and then make marginal gains until May 2019, all under the $5,000 mark. In reality, the BTC price, after dropping to “rock bottom” at just above $3,100 in early December 2018, edged upwards.

Several spurts of growth were seen in early January and February, prior to a massive April ascendance. On April 2, Bitcoin did away with the bank’s value mode and amassed a daily gain of over 15 percent, fuelling its current rise. Breaking the $5,000 ceiling in the process, which was pegged to remain intact well into May 2019, the king coin is now almost $3,000 ahead of the mark and is not looking to stop.

Source: Bloomberg

It should be noted that JP Morgan’s “intrinsic value” is calculated on the basis of the marginal cost of production, electricity prices, and hash rates. This model does not take into account, at least on absolute terms, the anticipatory effect of the 2020 halving, which, according to a slew of analysts is the behind the price rise.

Nikolaos Panigirtzoglou, the MD in the Global Market Strategy team at JP Morgan stated that Bitcoin breaking through its “intrinsic value” showed signs of mirroring its 2017 bull run. He evidenced this move by comparing the pre-December 2017 slump to the one seen prior to the current bullish swing.

The analyst added:

“Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices.”

With the analyst admitting that the imparting of an “intrinsic or fair value” to a cryptocurrency, much less a volatile one like Bitcoin, is a “challenging” ordeal, a mere JP Morgan acknowledgement of a Bitcoin bull-run is a remarkable sign for the digital assets industry, especially given the bank’s and its CEO Jamie Dimon’s Bitcoin-bashing in the past.

Mati Greenspan, senior market analyst at eToro attested to the same, adding a key point that JP Morgan failed to take into account in their calculation. He stated:

“Great to see JPM finally admitting that Bitcoin has intrinsic value.
Now wait till they understand that miners who run a surplus tend to begin hording.”

Despite Bitcoin slumping at press time, recording a 1.23 percent decline against the dollar, the prospects look positive. After recording a massive gain on 19 May, briefly surging past $8,000 for the second time in a week, Bitcoin created a High-Low [HL] at $7,100, which many analysts look at with glee.

This HL immediately following last week’s pull-back caused due to post-Consensus bears, a Bitstamp sell-order and market correction showed the king coin’s bullish persistence and can even be a foundation for a $9,000 ascendance, defying any “intrinsic value” expectations.

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