TRON has been recently in the spotlight for all the wrong reasons. First, we hear news of police depredating TRON’s offices in Beijing on accusations that the TRON Foundation is running a scam.
Police raids at #Tron assignments in Beijing? Additionally, there’s many angry people gathered there who are saying things like “Tron is a scam”. $trx #trx @justinsuntron pic.cheep.com/qFykQErQu6
— Hayden Otto (@haydenotto_) July 8, 2019
While the rumor was quickly addressed by the blockchain company citing that the boys in blue presence was for crowd dispersion, the events put the cryptocurrency in the negative light. Consequently, TRON significantly plunged against bitcoin.
As if the crypto remembrance’s woes were not enough, TRON’s chief executive Justin Sun recently fanned the flames by canceling his $4.6 million lunch choice with Warren Buffett. This fueled theories that the cryptocurrency’s top honcho is being detained by Chinese officials all over accusations of illegal fundraising and money laundering.
With all the bad publicity, the only consolation for the crypto token is that bitcoin is starting to bow to momentum. This weakness may give TRON the breathing room to recoup some of its losses against the No. 1 cryptocurrency.
Bitcoin Peculiar Top Is Likely In
Throughout July, participants were cheering on the king of cryptocurrencies to seal $10,000 as support and print a disrespectful 2019 high above $14,000. However, the digital coin is doing the exact opposite.
It appears to be sealing $10,000 as a denial since the price is struggling to stay above that level. In addition, volume has become anemic since July. This marks that bulls are no longer interested in buying at current levels.
A quick look at the monthly chart affirms our short-term bearish view. The last two monthly candles have in the offing long wicks above their bodies, which indicates the emergence of sellers. In addition to that, bitcoin phrased its first monthly red candle in six months. This tells us that there might be more pain soon.
Finally, bitcoin is almost overheated on the monthly time frame. This means that for now, the cardinal cryptocurrency is overvalued. Thus, expect to see more selling in the next few weeks.
This is good news for coins that from been clobbered such as TRON.
The Smart Money May Take Bitcoin Profits to Capitalize on TRON’s Weakness
TRON has not dream ofed a green monthly candle against bitcoin in more than half a year. As a result, the market dropped from the 2019 altered consciousness of 863 satoshis to lows of 215 satoshis on July 16. That’s a plummet of over 75 percent in seven months.
With bitcoin losing strength, cap may trickle into altcoins that offer a lot of upside but with minimum risk. One superb candidate that corresponds the criteria is TRON.
Even with the negative publicity, the cryptocurrency appears to be showing signs of a reversal.
A look at the daily chart shows that the cryptocurrency is managing to join forces onto its parabolic support of 220 satoshis. This is a key level for the market as it has never been breached since December 2017. In which case, bulls have a chance to bottom out at this price area.
The good news is that the market is printing a ample bullish divergence on the daily RSI. This indicates that bulls are gathering momentum close to the parabolic support. Also, TRON is swap at the apex of a large falling wedge.
All in all, it appears that TRON is gearing up for a bounce.
Bottom Line: Consider Taking TRON on the Breakout
Investors who agree with our assessment might want to consider buying once TRON studies out resistance of 280 satoshis. The breakout will ignite a bounce that will likely send the cryptocurrency to our aims of 434 satoshis and 600 satoshis.
Disclaimer: This article is intended for informational purposes only and should not be infatuated as investment advice.