Tron: A Challenge to the Entertainment Industry
Tron is a blockchain-based platform focused on entertainment content sharing, gaining significant attention in recent years with millions of users and billions of transactions. Its structure mirrors that of Ethereum, utilizing decentralized applications (dApps), smart contracts, and tokens.
Launched in 2017, Tron aimed to disrupt the media industry, competing with large web-based platforms like Netflix and Amazon. Its influence grew in 2018 when it acquired BitTorrent, a peer-to-peer network pioneer. This acquisition led to the launch of the BitTorrent token on the Tron blockchain in 2019, which allowed Tron to introduce a new cryptocurrency to millions of users.
Tron allows creators to develop content and applications without relying on centralized services, providing an opportunity for creators to sell directly to consumers, benefiting both creators and users.
The native cryptocurrency of the Tron blockchain is TRX, which can be used to pay content creators for access to their applications. TRX is available on over a hundred exchanges, and one notable feature is that transactions are free on the Tron platform.
Recently, Tron’s founder, Justin Sun, revealed that Tron DAO had bought $10 million worth of USDD and added $10 million worth of TRX to its reserves. USDD is Tron’s attempt at creating an algorithmic stablecoin, inspired by Terra’s UST. However, after the collapse of Terra’s UST in May, which lost its dollar peg, Sun reassured the community that USDD is collateralized by the Tron DAO Reserve, and it should not face the same fate. According to the Tron DAO Reserve, they hold $2.2 billion in collateral in TRX, BTC, USDT, and USDC, with the total USDD supply at $723.3 million, making it 316.2% overcollateralized.
The cryptocurrency market has experienced modest price increases in the past two weeks, despite analysts warning of the potential for further drops. Traders are eyeing an optimal entry point. Last Saturday, Bitcoin surpassed $24,500, which positively impacted TRX’s price. However, there are still concerns over a potential decline in the market. A survey conducted by the Wall Street Journal indicated that there is a 49% chance of a U.S. recession in the next 12 months. If central banks continue their aggressive policies, this could push the global economy into a recession, which might negatively affect Tron and other cryptocurrencies.
Tron (TRX) Technical Analysis
Following highs above $0.090 in June 2022, Tron (TRX) has fallen by over 40%. The price is now stabilizing above the $0.060 support level, but if it drops below this level, it could test the $0.055 support or even go lower.
In the chart below, the trendline is marked. As long as the price remains below this trendline, we can’t anticipate a trend reversal, and TRX will remain in the SELL-ZONE.
Key Support and Resistance Levels for Tron (TRX)
In the chart covering the period from September 2021, I’ve marked the key support and resistance levels to assist traders in forecasting price movements. Currently, Tron (TRX) remains under pressure when viewed in the broader context, but if the price surpasses the resistance level at $0.080, the next target could be around $0.090. The critical support level is $0.060, and a break below this would signal a potential drop to $0.055. If TRX falls below $0.050, a very h3 support level, the next possible target could be around $0.040.
Factors That Support a Rise in Tron’s (TRX) Price
Tron (TRX) has risen since the beginning of the last trading week, climbing from $0.062 to $0.072. The current price is at $0.068, and if it rises above $0.080, the next target could be around $0.090.
Traders should also keep in mind that the price of Tron is correlated with Bitcoin. If Bitcoin surpasses $25,000, we could see TRX at $0.090 or even $0.010.
Signs Pointing to a Potential Decline for Tron (TRX)
TRX is currently stabilizing above the $0.060 support level. However, if it falls below this level, it could test the significant support at $0.050. The price of TRX is also correlated with Bitcoin, so a drop in Bitcoin’s price typically exerts a negative effect on TRX’s value.
Analysts’ and Experts’ Price Predictions for Tron
With inflation reaching 41-year highs and aggressive monetary tightening by global central banks expected to continue, experts predict that risk-on assets like stocks and cryptocurrencies could face extended losses. Mike Novogratz, CEO of Galaxy Digital, suggests that cryptocurrencies could decline by over 50% from current levels, while Chris Burniske, a partner at Placeholder Ventures, believes a bottom in the crypto market could be reached in the latter half of 2022. Meanwhile, Adarsh Singh speculates that TRX might be ready for a breakout soon, and suggests that a price increase is more likely than a further decline in the upcoming months.
