Boring Bitcoin Sends Tron’s TRX Up By 17% in Three Days; What’s Next
Tron’s native token TRX was among the top gainers on Tuesday as its price jumped by up to 11.38 percent.
The TRX/BTC exchange rate settled an intraday high at 345 sats before correcting lower ahead of the New York trading session. The move downhill appeared in contrast with Bitcoin’s slow and sideways action above $10,000. So it appears, traders decided to move into alternative assets after finding no intraday opportunities in the Bitcoin market.
Tron (TRX) surges the third day in a row. Source: TradingView.com
Tron looked appealing for its short-term fundamentals. The token joined the ongoing decentralized finance craze after its CEO Justin Sun locked 6.7 billion TRX units inside the SUN genesis mining pool. That effectively removed a large portion of the TRX available supply from the market.
There are possibilities of demand outstripping supply as Tron tokens went out of circulation. It may also be possible that traders considered the brewing TRX-DeFi relation as their cue to hedge into TRX markets, especially as Bitcoin fell by almost 20 percent from its year-to-date high near $10,500.
OKCoin called the TRX rally “structured,” noting that Tron developers smartly created the demand for their native tokens by harnessing the growth of the yield farming boom. Excerpts from their comments:
“The yield farming protocols require users to deposit TRX and other Tron-based cryptocurrencies to generate a new coin. This means that those that want that coin but do not own TRX or other Tron-based cryptocurrencies are incentivized to go out on the market, buy those coins, then stake them for a profit.”
The Tron token surged by more than 17 percent in three days of trading. Each of its downside attempts ended up in a large wick, a technical which represents traders buying an asset as soon as its price fell.
Morra: Tron Could Hit 450 Sats
Edward Morra, a crypto market analyst, revealed his Tron positions to indicate where its token may be heading next. The daytrader confirmed that he bought TRX when it was trading for 295-315 sats. He further stated that he is looking to lock his profits when the price reaches above 450 sats.
TRX/BTC trading strategy by Edward Morra. Source: TradingView.com
“My rebuys in 295-315 range are positive,” said Mr. Morra. “Now, the reaction in the 385-400 resistance zone will be telling. I’m going to assume that the top is in already at 465 sats so treating this current movement as a correction but will decide if I close this long completely or let it ride more.”
TRX/BTC was trading at 330 sats at the time of this writing.