Tron had a bullish session on Wednesday, reaching above the nine cents level. However, we have given back quite a bit of this gain, and it is a market that still looks to be trying to build up enough momentum to go higher. Tron is not going to do well in this environment over the longer term, despite the fact that we have seen a significant bounce. The 50-day EMA has broken above the 200-day EMA, forming the so-called “golden cross”, but quite honestly this is a market that is pretty far out there when it comes to the crypto world.
Tron is a blockchain that I have used before, and I find it quite useful. The biggest problem is that it is rather small, so it’s overlooked when it comes to crypto traders until we get into “altcoin season.” The markets will continue to be noisy but based on the candlestick for the trading session on Wednesday, it looks like a pullback is more likely than not. If we do pull back from here, then I think we will go looking to reach the $0.07500 level. Looking at this chart, it’s worth noting that the 50-day EMA is sitting in that same general vicinity and rising, so one would assume that there will be a certain amount of “dynamic support” in that area.
If we were to break down below the 200-day EMA, the market could drop to the $0.06 level, an area where we had bounced from previously. That is an area that has been broken to the downside that could open up fresh selling, and with the way that crypto has been behaving, it would not be a huge surprise at all to see Tron fall apart for the short term.
We need to have a conversation about the fact that some of the crypto markets are going to disappear in the next year or two. Tron is a very speculative market, so you need to keep abreast of the idea of what is going on with the ecosystem. The market will continue to be very noisy, but if it does survive the coming crypto winter, Tron could be more of an investment and less of a trade.
