TRX jumped nearly 8.5% to reach $0.041 leading to the July 30th announcement by the TRON Foundation, regarding its “Secret Project” and launch of TVM Mainnet. This jump in price comes after the market was down following the SEC’s rejection of Bitcoin’s ETF proposal earlier in the week.
Technical Indicators for the Movement
The 100 SMA is below the longer-term 200 SMA to signal that the path of least resistance is to the downside. Price tested the 100 SMA dynamic inflection point and it seems to be holding as support. Also, the gap between the moving averages is narrowing to signal slowing bearish momentum. An upward crossover could even draw buyers back in.
RSI is still pointing down to confirm that sellers have the upper hand and could push TRON’s price to the bottom of the triangle around 0.0350. Stochastic is also moving south so TRON could follow suit, but the oscillator is also nearing oversold levels to indicate bearish exhaustion.
The TRX/USD is now supported by an ascending trendline, represented in purple.
It seems like fundamental factors and market expectations for the announcement were the leading causes of a sudden price increase.
Ever since Justin Sun’s public tweet about TRON being 80 times faster than Ethereum, the movement in TRX reflected investors’ trust in the founder’s words. Many are hoping for a groundbreaking technology that would be much faster and cheaper than Ethereum.
Anything that has the word ‘secret’ in it is bound to create a buzz. Due to speculations, especially after the acquisition of BitTorrent, TRX price jumped over 15% in an hour. This was followed by the announcement of a secret project claimed to be related to this acquisition and the road ahead.
TRON began migration from ERC20 tokens to the TRON20 standard, a native coin for the TRON Mainnet. The move has been an overwhelming success. As of July 30th, 2018, the block height reached 1,009,319, the peak number of single day transaction marked 49,518, global nodes reached 367 and the total number of account addresses was 75,206.
In the hopes that TRX will now be available for more than 100 million active users of BitTorrent, TRX rallied to $0.041 before coming down to $0.036. Nevertheless, it will be a ground-breaking accomplishment if TRON can deliver on its promise to successfully integrate and improve the Torrent ecosystem.
The Road Ahead
Following the live video announcement by Justin Sun, certain factors could sustain the current price of TRX:
An incentive for Seeders
Seeding is an integral part of the Torrent ecosystem. Until now, Seeders used to seed the files so peers on the network could access and download the content. TRON plans to revolutionize the entire network by introducing an incentive-based plan so Seeders can earn while seeding.
Global Payment System
TRON has announced a global payment system, empowering content creators to sell and share their content with users directly. This eliminates the need to go to a centralized company for payments. The global payment system will add utility to the TRON token which is missing in many other cryptocurrencies. Most importantly, this solidifies TRON as the most widely accepted decentralized token for instant payments for selling media content worldwide.
TVM Official Launch
The official TVM will be launched on August 30, 2018, after a month of sandbox testing by the global community. The successful launch of TVM directly affects TRON’s aim to corner the dApp market from Ethereum.
The TRX token should be in safe hands as a result of this recent announcement from the TRON Foundation. Q3 of 2018 will be extremely crucial for TRON as it hopes to regain its position in CoinMarketCap’s Top 10 cryptocurrencies in the world.
Only time will tell if TRON will be able to deliver, but for now, they have all eyes on them.