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Cryptocurrency : This is Tron (TRX), technical and fundamental analysis

With a market capitalization of $ 4.748 million, Tron (TRX) is the 23rd largest cryptocurrency in the crypto ecosystem. It is trading at $ 0.067 at the time of writing, accumulating a 14% gain in the last 24 hours.

Tron is a blockchain chain compatible with smart contracts, which makes it the home of different tokens and various decentralized applications.

Thanks to this capacity, today it is one of the most used chains, due to its low operating costs.

Recently this blockchain reached a great milestone that shows that adoption is growing strongly. The milestone I am talking about is the daily volume of USDT on the Tron network, which came by surpassing the volume of that same stablecoin on the Ethereum network.

Another great indicator of adoption is the number of addresses. Yesterday the Twitter account, TRONSCAN, announced the overcoming of the barrier of 40 million Tron accounts.

The growing activity is undoubtedly the product mainly of the low rates to operate within said network, and its ability to interact with decentralized protocols that are so popular today.

Today we are talking more than ever about Tron and I say this based on the indicator published by the Twitter account Lunar Crush, where a new historical maximum of social activity is observed, despite the fact that the price cannot fully recover.

As a conclusion of the fundamental analysis, we can say that Tron is in good health to support its current price, and even lead to higher profits. The main indicator of good health in cryptocurrencies is adoption, and in the case of this currency we see that it is doing quite well.

Tron Technical Analysis (TRX)

On the daily price chart we see a great recovery in the price of TRX during the last 2 days, after having reached an important support at $ 0.05, which was left after the market crash in mid-May.

A dominant short-term bearish direction is still fully evident. However, the possibility of a double bottom on the named support may give hope for a broader recovery in the near future.

Today the price of Tron is visiting a resistance near $ 0.68, a place from which it could give way either to the beginning of a new bearish momentum (unlikely), or to a slight retracement to continue extending the gains.

I say that a further decline is unlikely to occur, due to a greater upward force that we will see on the weekly chart.

Technical analysis of the daily price chart of Tron (TRX).  Source: TradingView.Technical analysis of the daily price chart of Tron (TRX).  Source: TradingView.Technical analysis of the daily price chart of Tron (TRX).  Source: TradingView.Technical analysis of the daily price chart of Tron (TRX). Source: TradingView.

Weekly chart

The medium and long-term trend continues to exert upward pressure, and is causing recent bearish intentions to be absorbed quickly, avoiding too negative a signal.

The inability of the price to mark a new lower low on the weekly chart tells us that the bears are already quite exhausted, and may have marked the bottom before resuming the larger trend.

In order for this to be the case, the resistance at $ 0.077 must be broken.

In case a low minimum is marked in the near future, then we may be thinking about an accentuation of the selling pressure. At the moment, this does not seem likely.

All our publications are informative, so in no case should they be followed as investment advice.

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