TRON (TRX) Price Prediction for 2021: Starting to Catch Up With the Crypto Market
Skerdian Meta • 7 min read
TRON (TRX) – Forecast Summary
|TRON Forecast: H1 2021|
Price: $0.18 – $0.20
Price drivers: Crypto market sentiment, TRON progression, Technicals
|TRON Forecast: 1 Year|
Price: $0.30 – $0.35
Price drivers: TRON reputation, Risk sentiment, Tron partnerships
|TRON Forecast: 3 Years|
Price: $1 – $ 2
Price drivers: TRON network expansion, Economic Recovery, Tighter monetary policies
The TRON network started as an interesting idea from the current CEO Justin Sun. It aims to build a free global digital content network based on blockchain technology, just like the cryptocurrencies. In 2017, the TRON Foundation held the ICO (Initial Coin Offering) which raised $70 million. The native token of the network is called TRONIX and it went live at the end of 2017, at a very good time for cryptocurrencies, which had just started surging, attracting the attention of the broader public.
TRONIX which is quoted as TRX came to life in November that year and surged from 0.001 to 0.3530 by the first week of January the next year on the Binance chart, as well as in other crypto brokers platforms. But, it followed the rest of the cryptocurrency market back down at the beginning of 2018 and settled within a range for three years. While the rest of the crypto market was gaining momentum in Q4 of 2020 as digital currencies acquired the safe haven status, TRX/USD was still trading within the range near the bottom. Although, there were some positive signs in February and March, when we saw a jump in each month. But overall, the TRON is lagging the broader crypto market during these enormous bullish times, until it breaks above 1.1030.
Recent Changes in the Tron Price
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Factors Affecting TRON
TRON, which is another new cryptocurrency of the last few years, ranks 20th by market capitalization, at $ 6.678 billion as of March 31st 2021, tripling in value since late February. Like all other cryptocurrencies, TRON is affected by the sentiment in the digital currency market. Although, it only started catching up with the market quite late, in February while most cryptos started the surge in October last year. Similar to Basic Attention Coin BAT which is a token for internet ads on the Brave browser, TRONIX is a token for the decentralized digital content platform TRON, which is its own separate universe, hence the delay to start catching up with the bullish momentum.
TRON Live Chart
TRON Price Prediction for the Next 5 Years
What’s the TRON Network?
As we mentioned in the beginning, the young Chinese entrepreneur who was chosen by another great Chinese entrepreneur to study at the Hupan university, had a bright idea of opening a blockchain platform which would deliver peer-to-peer digital content between users and creators. That idea came to life in 2017 when the TRON Foundation, based in Singapore, raised enough funds to go ahead with the project.
The TRON network is basically a mix of the digital content and the crypto world. It works as a platform, offering a free digital content entertainment system worldwide, like a global Netflix. But, it is also decentralized like a cryptocurrency, where content producers can sell/transfer their work directly to the user/consumer without the need of the middleman, such as Netflix itself, which takes a large amount of the revenue from selling the content to users. In TRON’s case, all the revenue goes to the content producer.
The decentralized platform and distributed storage technology of the TRON network also attempts to address another significant issue, which might be even more important than the revenue itself. Online information and the digital content have been increasingly concentrated in a few hands like Google, Facebook etc. TRON challenges the very few and powerful corporations controlling large parts of the content over the internet, hoping to bring some balance.
The TRONIX Token
As we mentioned above, the TRON blockchain network aims to eliminate the big companies that remain between content creators and content consumers, by acting as a bridge between the two, as a decentralized storage and distribution facility. In return, this reduces the cost for the consumers of the digital content, and increases the revenues for the producers, since the distribution is free. The consumers or the audience can access the content directly and pay the creators for it in the same manner.
Although, you will have to own Tronix (TRX) or just TRON, the native token for the host network to pay for the content you consume. TRX/USD surged pretty close to $1 on the last day of March, which was the biggest 1-day surge ever. Initially you could only exchange Bitcoin or Ethereum for TRON in exchanges such as Binance and Liqui, but nowadays it’s a lot easier. You can use fiat currencies and credit cards, as well as other cryptos.
TRON Evolving and Milestones
Justin Sun had clear ideas when he started the project; he envisioned it in steps, with milestones in place to be reached after certain periods, which have made the TRON network the world’s largest decentralized network for entertainment and file sharing, as well as for gaming and trading. Around 1.5 billion transactions have been carried out on TRON with more than 17 million wallets created so far. Besides that, 1,500 dApps have now been created on the TRON network, which account for a daily transaction volume of over $12 million.
In 2018, TRON’s free platform for peer-to-peer distribution and storage of content. called Exodus, which was not using blockchain technology. Then came the Odyssey platform in the beginning of 2019, which leverage the power of blockchain for TRON. It introduced monetary incentives to promote the creation and hosting of the digital content on the host network.
Although, one of the most prominent acquisitions for TRON to date was buying BitTorrent in 2018, which was the biggest peer-to-peer file sharing network back then and it might still be, as of April 2021. In September 2020, the TRC20 token was launched for BitTorrent, which became a collateral method to JUST, which we will explain below. There have been a few developments since then, especially in 2020, which saw the attention of the public for cryptocurrencies and DeFi increase immensely, with the world encapsulated by great uncertainty for the future. In February last year, TRON bought Steemit Inc which is one of the most popular blogging networks for cryptocurrencies and blockchains in general. Similar to the acquisition of BitTorrent, that action added a large number of users to TRON.
The partnership with Samsung was another important event for TRON, since it offers direct access of TRON to millions of people who use Samsung devices.
TRON also formed the foundations of DeFi on the network last year, as it introduced JUST, which is a stablecoin lending and governance platform. Not much later, TRON launched JustSwap in August 2020, the first decentralized automated market maker exchange on the network. The addition of the option for making transactions with Ethereum and Bitcoin on TRON was another great milestone reached. This was made possible by partnering with BitGo, which brought wrapped Bitcoin (WBTC) and wrapped Ether (WETH) to the TRON network as TRC20 tokens. Now it’s easier as well as cheaper to make transactions in TRON and make payments. Last year’s new partners of TRON includes Huawei in order to bring the BitTorrent application to 3 billion possible users on Huawei’s AppGallery store, which would make the platform the global leader if it was to fully materialize. TRON also bought DLive, which is one of the largest decentralized streaming platforms.
Technical Analysis – Breaking Above One Resistance, Heading for the 2nd One Now
TRON finally started turning bullish in February
As we mentioned above, TRON started life at a great time for cryptocurrencies, right before the big surge at the end of 2017, although a number of coins were released at that time, which raises the question if there was something dodgy going on. Anyway, it surged together with the broader market from $0.001, to above $0.35 by January 2018. But, it came crashing down with the market as well in the beginning of 2018. In April we saw another bullish move which took TRX/USD to 0.1, which is the target now after the latest surge. TRON traded sideways for around three years, as most digital currencies did during that period, while the 20 SMA (gray) was providing resistance on the monthly chart. The price moved above that moving average in August last year, when the bullish trend in the crypto market began, but it couldn’t join the crypto surge until February this year, after buyers had attempted to take TRON higher and had failed. In February the big bullish move started and in March it picked up further pace.
The previous resistance at $0.1 held as support on the first attempt
On the weekly chart, we see that the price bounced off the 20 SMA (gray) after coming off that big hill at the beginning of 2018. But, the bounce ended right at $0.1, which is the target now after the latest bullish move in Q1 of 2021. TRX/USD slipped below the moving averages on this time-frame and remained below $0.040 until the second week of April this year, when the big bullish candlestick took the price above it at last. That area later turned into support, after sellers retested the downside. Since then, TRON hasn’t looked back and the last week in particular has been really bullish. Moving averages turned into support as well at the end of 2020, so they should support whatever pullback that might occur in the future.
MAs can’t catch up after the surge
On the daily chart above, we see that the price turned bullish in March 2020, following the coronavirus crash. Coronavirus turned into the greatest event for cryptocurrencies in the long run, as it changed the social and political landscape on a global scale, earning cryptocurrencies the safe haven status. TRON was late to join the party as we explained above, but it has been catching up lately. The price moved above the moving averages on the daily chart, with the 20 SMA and the 50 SMA (yellow) turning immediately into support and remaining as such until March this year. These moving averages have been providing support when the trend picked up pace, while the larger period moving averages such as the 200 SMA (purple) took up that job when the trend lost pace and the pullbacks were deeper, with the 100 SMA (gren) also helping. Although, since February the larger MAs couldn’t catch up and the 20 and the 50 SMAs have been pushing the price higher. Now even the smaller MAs can’t catch up with the price. The latest occasion the 20 and 50 SMAs provided support was on March 25, when the price formed a hammer above them, which is a bullish reversing signal after the retrace lower. TRON bounced higher and seems to be heading for $0.1 now.