At a time when the general sentiment in the cryptocurrency sector is uncertain whether movements towards a bull or bear market can be expected, crypto traders are interested in the future performance of TRON (TRX), which has notably been in a state of deflation for nearly one year.
Indeed, TRX has been touted as deflationary after the TRON community agreed to make it such by introducing a burning mechanism that decreases its total circulating supply over time, making the coin more scarce as opposed to inflationary currencies.
That said, the price of TRON has been moving in a choppy pattern since the year’s turn, hitting a high of $0.08841 on June 1, after which it started its relatively turbulent descent. Over the past month, however, it has strengthened by 4.69%, gaining 0.57% in the past week and currently trading at $0.06226, as per CoinMarketCap data.
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In fact, in mid-October, TRON registered significant growth in activity, with more than 4 billion network transactions taking place in 24 hours after rumors surfaced that its founder Justin Sun was the real buyer of the crypto exchange Huobi.
What’s next for TRX price?
Based on the chart analysis, TRX’s current support level to test is at $0.048, whereas the resistance for the 14th-largest digital asset by market cap presently stands at $0.075, while TRON is in the process of forming a green monthly candle after two red months.
TRX technical analysis
The most recent technical analysis (TA) summary stands at a solid ‘buy’ sentiment at twelve, with ‘neutral’ at nine, and ‘sell’ at five. Breaking down the analysis further, oscillators are in the hesitant ‘buy’ mood as well at three, with eight for ‘neutral’ and no ‘sell’ sentiment.
Looking at moving averages (MA), the technical indicators are in the slightly stronger ‘buy’ sentiment compared to oscillators, standing at nine for ‘buy’ versus five pointing to the ‘sell’, and one to the ‘neutral’ sentiment.
That said, TRX was at press time changing hands at the price both below its 100-day and 200-day moving averages, but above the 10-day, 20-day, and 30-day moving averages, signaling a potential change in the long-term sentiment to the advantage of the bulls, but also indicating that the ‘HODL’ mode should be considered for the time being.
Can TRX expect a run toward $0.1?
If TRON manages to break through the resistance level of $0.075, it can be safe to expect that it will continue its run toward the year’s high of $0.088, and perhaps further to $0.1, especially when the general sentiment around the asset and its recent movements are taken into account.
On top of that, the crypto community at CoinMarketCap is bullish on TRX’s near future, considering it has predicted it to trade at an average price of $0.066 by the end of October, therefore optimism on the possibility of its upward trend isn’t misplaced.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
