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Tron [TRX/USD] Technical Analysis: Bull run to take place soon

Priya

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Tron [TRX/USD] Technical Analysis: Bull run to take place soon
Source: Unsplash

Tron [TRX], the eleventh-largest cryptocurrency by market cap, continues to be in the limelight because of its advancements. It recently grasped the attention of the community by surpassing Monero in terms of market capitalization for the second time. Additionally, Tron recently crossed the 2 million mark in terms of daily transactions, standing right to its claim of surpassing Ethereum [ETH] the future.

According to CoinMarketCap, at press time, Tron is trading at $0.0144 with a market cap of $956.03 million. The coin has a trading volume of  and had witnessed a surge of 25.28% in the past seven days.

One hour:

Tron [TRX] one-hour price chart | Source: Trading View

Tron [TRX] one-hour price chart | Source: Trading View

In the one-hour chart, the cryptocurrency shows a downtrend from $0.0166 to $0.0156. It also pictures another fall from $0.0146 to $0.0139. The coin records an uptrend from $0.0116 to $0.0137. The immediate resistance for the twelfth biggest cryptocurrency is set at $0.0140 and a strong resistance has found its ground at $0.0156. The coin has found its support level at $0.0114.

Parabolic SAR has started to move away from the bull’s companionship and has taken its steps to make amends with the bear, as the dots have started align above the candlesticks.

Bollinger bands are forecasting a less volatile market for the cryptocurrency as the bands have started to contract.

Chaikin Money Flow is demonstrating that the money has started to pour into the market for the coin, indicating a bullish trend.

One day:

Tron [TRX] one day price chart | Source: Trading View

Tron [TRX] one day price chart | Source: Trading View

In the one-day chart, the coin has a downtrend from $0.0498 to $0.0247. It also pictures another steep fall from $0.0185 to $0.0119. The coin has an immediate resistance at $0.0158 and a strong resistance at $0.0247. The support for the coin is set at $0.0118.

Klinger Oscillator is on the bull’s side of the market as the reading line has made a crossover only to take the direction up north.

MACD has also on the same path as the moving average line has made a bullish crossover.

RSI is depicting that the buying pressure and the selling pressure for the coin is currently evened out in the market.



Conclusion:

The bull is ready for the run with the support of Klinger Oscillator and MACD from the one-day chart and CMF from the one-hour chart. The bear also on the field with the support of Parabolic SAR from the one-hour chart.





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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.

Bitcoin

Bitcoin [BTC] and the US Dollar: Halving mirror effect on fiat would result in FOMO explosion

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Bitcoin [BTC] and the US dollar: Halving mirror effect on fiat would result in FOMO explosion
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Bitcoin’s halving, scheduled for May 2020, has everyone talking, with many focusing on the mining rewards that will be enforced after the event.

One among these theorists is Anthony Pompliano, Managing Partner at Morgan Creek Digital, and outspoken Bitcoin bull. In a recent tweet, Pompliano equated the top cryptocurrency’s halving principle to the top fiat currency, the US Dollar [USD].

Pompliano focused the effect on the banking class, which has been leaning towards the cryptocurrency market off-late with the crypto-craze turning the likes of Fidelity, Etrade, and JP Morgan. Another important premise for the USD-halving effect was the ‘unlimited supply’ of the fiat currency, which can be minted by the US Federal Reserve, unlike Bitcoin which has a fixed cap of 21 million.

The Morgan Creek executive suggested, based on the above premise, that if the USD endured a periodic halving, bankers would be “FOMOing” all over the place.

His tweet, in full, hypothesized,

Presumably, Pompliano’s tweet was meant to reflect the supply-control inconsistencies of the USD versus Bitcoin, and the reaction of the banking class to the same, from an investment point of view.

Frances Coppola, a prominent financial journalist, hit back at Pompliano for mulling this mirror effect from within his “bubble.” She stated that USD supply is decreasing due to the Fed ‘burning’ fiat currency, rather than printing more of it, with the intention of reducing the supply on a “permanent” basis.

She responded,

Pompliano responded by questioning if Coppola believed that the US government does not engage in the printing of its fiat, to which the latter responded that her statement was in reference to the Fed “reducing the supply” by burning USD.

Despite this back-and-forth and the “printing” and “burning” of fiat currency, as opposed to cryptocurrency, is the will of a single entity, the US government. On the flipside, Bitcoin and its halving takes place with the production of every 210,000th block, or every four years.

This halving cuts rewards, which currently stand at 12.5 BTC per block and are set to drop to 6.25 BTC per block in May 2020, thereby aiming to self-control the supply of BTC in the market. As mining rewards dip, miners would shy away from the market as their profits are cut in half. This ‘fear’ would cause an increase in the price for the cryptocurrency to continue production. Hence, the inflationary effect is balanced.

Unlike the USD, Bitcoin being decentralized does not have one entity controlling supply. Hence, “printing” or “burning” cannot take place at will to control macroeconomic factors. This point, despite not being emphasized by Pompliano, is an important demarcation between Bitcoin and the fiat world.



To further the debate, Coppola added that the halving would in fact, dent Bitcoin’s prospects of being a world currency. In light of the cryptocurrency falling short of this feat, she stated, “Bitcoin is an asset, not a currency,” referencing the words of Chris Cook from Market 3.0.

Cook’s “Currency paradox,” detailed the equation of Bitcoin as a method of payment relative to its drop in liquidity that will happen periodically with the passing of every halving. The “Currency paradox” read,





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