- Tron price down but bullish
- Partnership with Tether is positive for TRX
- Transactional levels low but stand to rise in days ahead
The collaboration between Tron and Tether should further innovation and provide extra liquidity for Tron based DEXs. Even so, it will be until Q2 2019 when this integration happens. Before then, bulls are in control, but trend confirmation depends on how fast prices close above 2.5 cents.
Tron Price Analysis
That Tether Limited (USDT) and Tron are partners is a strategic as well as a game-changing decision for both companies. No doubt, both will benefit, and as innovative companies, the inclusion of a trusted stable coin creates a new opportunity for users meaning Tron as a platform and TRX as a native currency stands to reap in significant benefits.
With the announcement, the top-most beneficiary will be DEXs that run off the Tron blockchain. Add this to the milestone that Tron now has more than two million customers and week-over-week growth in the number of transactions; the launch set for Q2 2019 will be a boon for TRX as the network would have better value storage capacity.
According to the CEO of Tether, Jean-Louis van der Velde:
“This integration underlines our commitment to furthering innovation within the cryptocurrency space as we continue to anticipate the needs and demands of the digital asset community.”
Not only does this place Tron ahead of the pack, but it will be the first time two leading blockchain firms partner for the sake of the community. The crossover will undoubtedly increase liquidity as USDT would be completely compatible with Tron’s protocols and dApps.
Regardless, TRX is under pressure and one of the worst performers in the top 10. At press time, the coin was down 2.2 percent from last week’s close and appears to be banding with the lower BB band.
From our previous TRX/USD price analysis, bulls have a chance as long as they maintain prices above Jan 13-14 lows at 2.1 cents. What would trigger aggressive traders into action is if prices resist lower lows, build on the three-bar bull reversal pattern of Mar 3-5 and after that close above Mar 5 highs at 2.5 cents.
If not and there is a meltdown below 2.1 cents, the bullish breakout pattern of Jan 8 would be invalid.
In recent days, Feb 24 bear bar guides our analysis. It has an average of 37 million which is way above averages of 6.5 million. Although we are net bullish, we prefer complete reversal of Feb 24 losses behind high volumes exceeding 12 million of Mar 5 and preferably 37 million.
Author: Dalmas Ngetich