Tron (TRX) Enters Heavy Consolidation Above $0.05

Cryptocurrencies are on the move north today, led by nice gains in Tezos (+4.14%), Ethereum ETH (+1.6%), Ripple XRP (+2.24%) and Polkadot (+4.44%). Bitcoin BTC (+0.52%) is back above the key level of $30,000 and ETH is holding north of $2,000. However, Dogecoin (-6.47%) and Tron (+0.15%) are lagging behind. For Tron, it seems as though the $0.05 level has been traded for months.

As we roll deeper into 2H 2021, Tron is looking increasingly bearish. Long gone are last spring’s highs above $0.16. Now, a weekly downtrend is intact and prices are in heavy consolidation near the $0.05 handle. Ultimately, $0.05 is either the TRX/USD’s bottom or just a pitstop on the way back to $0.01.

Every week, the Tron Foundation twitter feed issues a progress report on TRX usership. Here are this week’s highlights:

• The Tron blockchain height exceeded 31.95 million. Block height is the entire number of confirmed blocks in a coin’s history. It gives us an idea of a crypto’s popularity and usership. By comparison, BTC currently has a block height of 69.17 million.
• Tron’s total number of accounts reached 46.185 million
• The total value locked (TVL) across Tron DeFi products hit $7.8 billion. TVL is an intricate metric used to measure DeFi growth on the blockchain. 

If these numbers are accurate, then Tron has a formidable standing in the blockchain. But, values are struggling to rally too far above $0.05. At this point, there are serious questions about the future of this altcoin.

Tron Can’t Shake The $0.05 Value Area

For Tron, the $0.05 is shaping up to be the ultimate technical level. Prices are down more than 66% since last spring’s run-up ― is the TRX/USD destined to give back all of 2021’s gains?

Overview: In a Live Market Update from 1 July, I outlined a long trading plan for Tron from $0.05. The trade is now live and performing so-so. However, $0.05 is set up to be a solid bottom for the TRX/USD. Also, the long trade’s stop loss ($0.03) is a rock solid market exit point. If $0.05 gives way for Tron, this coin is heading back to its yearly open in short order.

ABOUT THE AUTHOR See More

Shain Vernier

US Analyst

Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.

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