Tron (TRX/USD) Is Desperately Seeking A Support Level
It’s make or break time for many cryptocurrencies as values are down dramatically from last spring’s highs. One of the hardest-hit coins has been Tron. At press time, the TRX/USD is off about 4% over the past 24-hours and closing in on the $0.0500 handle. The recent weakness in Tron has highlighted a two-month bearish consolidation pattern.
Summer 2021 has been a rough period for cryptos. For Tron, values have rotated between $0.05 and $0.08, well off April’s high of $0.18. Since mid-May’s crypto market crash, sellers have checked every rally in the TRX/USD. Now, prices appear to be on a collision course with the big-round-number of $0.05.
On the crypto news front, Dogecoin co-creator Jackson Palmer is making headlines with a skeptical series of tweets regarding cryptocurrencies. Here are the high points of Palmer’s quotes:
- “I am often asked if I will ‘return to cryptocurrency’ or begin regularly sharing my thoughts on the topic again. My answer is a wholehearted ‘no,’ but to avoid repeating myself I figure it might be worthwhile briefly explaining myself here.”
- “Despite claims of ‘decentralization,’ the cryptocurrency industry is controlled by a powerful cartel of wealthy figures.”
- “The cryptocurrency industry leverages a network of shady business connections, bought influencers and pay-for-play media outlets to perpetuate a cult-like ‘get rich quick’ funnel designed to extract new money from the financially desperate and naive.”
Ouch. Palmer’s indictment of the crypto industry is scathing and is certainly not doing DOGE and Tron prices any favors.
$0.05 Back In View For Tron
In a Live Market Update from early in the month, I outlined a short-term buying opportunity for Tron. Now, the $0.0500 entry point is coming into view. If you’re interested in the trade idea, feel free to check it out here.
Overview: As of mid-July, most cryptos are testing deep retracements in their March 2020/July 2021 ranges. Tron is following suit, putting in a hard test of 2021’s 78% Fibonacci Retracement ($0.5738). This level is under fire and will likely be taken out in the coming sessions. If so, a short-term bullish bump from $0.0500 may set up nicely as bears set their sights on 2021’s low at 0.02400.