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Tron [TRX/USD] Price Analysis: Cryptocurrency assisted by the bull in the bear tunnel

Akash Anand

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Tron [TRX] has been one of the few cryptocurrencies that has enjoyed significant sporadic bullish rises in a highly bearish market. The
Source: Unsplash

Tron [TRX] has been one of the few cryptocurrencies that has enjoyed significant sporadic bullish rises in a highly bearish market. The ongoing price slide is the longest standing bear market in the history of the cryptocurrency market, which has affected major coins like Bitcoin [BTC], XRP and Ethereum [ETH]. At the time of writing, Tron was the eighth-largest cryptocurrency in the market, sitting above Stellar and Bitcoin SV to close the top-10 club.

1-hour:

The one-hour graph for Tron shows a significant downtrend that resulted in the price dropping from $0.0286 to $0.026. The support has been holding at $0.0245 while the resistance is at $0.0286.

The Chaikin Money Flow indicator shows a slight spike up on the graph above the zero-line. This is a sign of the capital coming into the market being more than the capital leaving the market.

The MACD indicator is a typical example of the sideways movement in the market right now. The signal line and the MACD line have both started moving as a conjoined pair with the MACD histogram undergoing a lull at the same time.

1-day:

Source: TradingView

Source: TradingView

Tron’s one-day graph paints a better picture for the cryptocurrency with the visible uptrend lifting the price from $0.0132 to $0.0257. The support has been holding at $0.0117.

The Relative Strength Index puts the cryptocurrency close to the overbought zone. This is a sign of the buying pressure being more than the selling pressure.

The Awesome Oscillator displays a small spike on the chart, which means that the market momentum within Tron has increased, compared to earlier months.



Conclusion:

The above-mentioned indicators show a mix of bearish and bullish signals with the bull getting more votes. Tron is one of the few cryptocurrencies which has not yet succumbed completely to the bear, a sentiment that is not shared by the rest of the cryptocurrency market.





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

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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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