- TRON’s native token TRX has been under great pressure, hugely affected by macro events around the crypto space.
- The project’s native token, TRX, has a market cap of $843,554,421,187 and reached an all-time high of $0.3004 on Jan 05, 2018.
TRON is a blockchain-based, open-source protocol for the global digital entertainment industry.
TRON’s vision is to build a free, global digital entertainment ecosystem that allows anyone to store and own data using blockchain technology.
The project’s native token, TRX, has a market cap of $843,554,421,187 and reached an all-time high of $0.3004 on Jan 05, 2018. With a circulating supply of 92,202,259,054 and a market cap of $4.7B, TRX is currently the 17th largest cryptocurrency by market capitalization. However, it has dropped significantly in the past weeks and experts have made various TRX price predictions for the end of 2022.
Tron dropped the 2nd week of November, what do experts say?
According to experts, there are 3 main reasons for the continuous drop in TRX prices.
1 The first is the loss of faith in cryptocurrencies.
The crypto industry was dealt a major blow when one of its own, FTX, filed for bankruptcy. This caused many to lose faith in cryptocurrencies and question their safety. Users on the platform started withdrawing their crypto assets, which led to a domino effect and further drops in TRX prices.
2 Presence of Competitors like BitGert
According to an article by analytics insight, Bitgert (BRISE) and Centcex (CENX) have also been experiencing a bigger adoption rate than TRX this year, and this is seen in their price performance in 2022. The success of these projects has drawn attention away from TRX, which has contributed to its drop in price.
3 Instability within the TRON network in the past weeks.
Besides the effects of FTX’s crash, there have been speculations about Almeda selling its USDD holdings. The founder of TRON also tweeted about this, stating that Almeda might have sold its USDD holdings. This had a negative impact on USDD (the Tron network’s algorithmic decentralised USD stablecoin). As a result, it was depegged from the dollar multiple times, causing panic among investors. This led to a sell-off of TRX, which contributed to its continuous drop in price.
Overall, TRON is a volatile token, and to benefit from volatility you can utilise trading automation tools like;
- An exchange bot: An exchange bot is a software that trades on your behalf on an exchange. It can be connected to your bank account, so you can easily deposit and withdraw money. There are many exchange bots available, but KuCoin is one of the most popular ones.
- A trading robot: A crypto trading robot is a software that trades on your behalf on an exchange. There are many different types of trading robots that integrate with many centralised exchanges. For example 7tesler allows you to trade with up to seven different cryptocurrencies at the same time but these are considered a bit more risky.
- A multi-exchange bot: A multi-exchange bot is a software that trades on your behalf on multiple exchanges based on a set of conditions. This type of bot is becoming more popular as it allows you to take advantage of arbitrage opportunities. 3commas and Pionex are two of the most popular multi-exchange bots.
With that said, what does the future hold for TRX?
How is Tron (TRX) expected to perform by the end of 2022?
Technical Analysis
TRON has been in a downtrend since the beginning of the year, trading at a low of $0.045 (the lowest it has been this year). It has found support at this price point multiple times, but has failed to break below it.
The moving averages have been acting as resistance, and the price has stayed below the 50EMA on the daily chart since August. Overall, TRX seems bearish from a technical standpoint. If the support level doesn’t hold up price, then TRON could trade lower to the next minor support level at $0.03
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Fundamental Analysis
According to CryptoQuant’sdata, TRX might be approaching an oversold condition. However, the FTX crash and the Almeda incident have caused many to lose faith in TRON. In addition, the presence of competitors like Bitgert and Centcex has drawn attention away from TRX. As a result, it is hard to say whether TRX is undervalued at this point. On the bright side, the founder of Tron, Justin Sun, has stated that FTX and TRON will soon allow TRX users to transfer assets from FTX to external wallets. This might help to increase confidence in TRON and lead to a price increase.
TRX looks bearish
At the moment, the FTX crash, the Almeda incident, and the presence of competitors have all caused TRX’s price to drop. The cryptocurrency is currently trading at a support level of $0.045, but if this support level doesn’t hold up, then TRON could drop to the next minor support level at $0.03 in the coming months. From a technical standpoint, TRX looks bearish, but from a fundamental standpoint, the cryptocurrency might be undervalued.
