Despite volatility returning to cryptocurrencies, the Tron price has hardly moved this week. So here’s what to expect when TRX finally wakes up.
Tron is last trading at $0.0722 (+1.14%), a 7-day change of +0.13%.
When I look at my crypto watchlist, I can see signs of life almost everywhere. Following Bitcoins jump to $40,000 earlier this week, altcoins have witnessed some large moves.
Quant has jumped 73% higher. Chilliz is not far behind with a 58% gain, and Shiba Inu has roared, rallying 24% in the same period.
So what’s stopping the Tron price from jumping on the rally train?
The logical answer seems to be that investors prefer its competitors. TRX competes against the likes of Cardano/ADA and Polkadot. Both are increasingly seen as a bigger threat to Ethereum’s crown than TRX.
That doesn’t mean to say TRX isn’t showing positive signs. Tron has become the preferred method for Tether stablecoin transactions. Cryptocurrency exchanges expect this trend to hold, citing Tron’s low commissions and ease of use as a major advantage for TRX.
The daily chart highlights the lack of activity in the Tron price. For the last month, TRX has been directionless, trading sideways in a narrowing range.
However, a trading opportunity may come when the range finally gives out.
We can see that TRX is wedged between the resistance of a descending trend line and the support of a rising one.
If the price breaks below the supporting line at $0.0650, it’s likely to head South to the May 23rd low at $0.0550.
Alternatively, a breakout on the upside could see the Tron price return to $0.0950.
It’s hard to predict which comes first. However, as we have seen with other digital assets, when they start to move, they often do so in a big way.
Follow Elliott on Twitter.
