After an incredible rally to a seven-year high, the Tron price showed a counter impulsive pressure from the top, suggesting a possible trend reversal.
Grayscale Rumor: How Could the TRX Price Do?
Speculation regarding Tron's potential participation in Grayscale's portfolio of investments, which Zhang claims provides a layer of monetary legitimacy, was one of the catalysts mentioned by the analyst. Grayscale announced in October that TRX was one of the 35 tokens being considered, with periodic updates planned regarding possible additions.
In addition to the Grayscale rumors, Tron leader Justin Sun's high-profile activities, such as his $30 million acquisition of WLFI tokens linked to a project connected to the Trump family and his appointment as an advisor, have contributed to TRX's ascent.
According to Zhang, Sun's amusing stunt comprising the conceptual piece "Comedian" also encouraged community participation and subtly increased the value of associated tokens like BAN.
TRX Key Strengths
Aided by Sun's Singapore-based Tron Foundation, TRON was launched in 2017 following a $70 million first coin in September of the same year. It functions as a distributed ledger with high throughput intended to compete with Ethereum.
Fundamentally, TRON aims to transform how digital content is distributed by cutting out middlemen like Facebook and YouTube and establishing direct communication between producers and users.
Tron Price Prediction Technical Analysis
In the daily chart of TRXUSD, the recent price showed a bearish counter impulsive momentum, raising a question about the existing bullish pressure.
In the volume structure, the highest activity level since 18 November is above the current TRX price, suggesting a valid downside pressure from the institution's perspective. As long as the current price remains below the high volume line, we may expect a downside pressure to continue.
On the bearish side, the dynamic 50 day Exponential moving average is the immediate support to look at. A selling pressure below the 0.2428 support level could be a bearish continuation aiming for the 0.1854 support level.
On the other hand, overcoming the high volume line with a bullish daily close might reverse the current momentum and open the room for reaching the 0.3400 level.
