TRON (TRX) has ended its upswing by creating a new all-time high just under $0.6. What’s the reason for this price surge and should you buy some TRX now?Fundamental analysis: new update proposal already priced in?
TRON is a blockchain-based operating system that can handle a massive amount of transactions. While Bitcoin can deal with up to six transactions per second, and Ethereum with up to 25, TRON states that its network has the capacity for 2,000 transactions per second.
TRON is also one of the more popular blockchains for building Decentralized Applications (DApps) and is mostly focused on content sharing and entertainment. The project is also known for the aquisition of the file sharing service BitTorrent.
Tron has just approved No.51 committee proposal, which was more than well-accepted by its community. This information has reflected to its price beforehand, and is most likely already priced in. However, TRX still has a lot of upside.February 12, 2021
TRON posted week-over-week gains of 52.73%, outperforming both Bitcoin’s 25.12% gain and Ethereum‘s 6.74% gain. Tron is currently the 21s-largest cryptocurrency by market cap, and currently boasts a market value of $3.91 billion.
At the time of writing, TRX is trading for $0.553, which represents a price increase of 94.75% when compared to the previous month’s value.TRX/USD technical analysis: healthy retracement in play after a massive upswing
The 21st-largest cryptocurrency by market cap has seemingly ended its uptrend after hitting an all-time high of $0.6. TRON’s current price seems very overextended, and while the cryptocurrency has a lot of upside potential, its price will most likely experience a slight downturn.
TRON has seen volume increase across the board, both for its upswings and downswings. If TRX manages to pass the $0.6 resistance level, it will most likely face the next resistance at -27.2% Fib retracement level of $0.662. On the other hand, its first strong support level is at the 23.6% Fib retracement level of $0.538.TRX/USD daily chart
TRON’s RSI on the daily time-frame is currently well into the overbought territory, with its current value sitting at 80.76.TRX/USD 1-hour chart
Zooming in to the hourly time-frame, we can see TRX’s price increase on increased volume. The 21-hour EMA seems to provide strong immediate support to TRX, while the 50-hour EMA is right underneath it as the next support level..
While it is most likely true that the incoming protocol upgrade is already priced in, TRX has a lot of upside potential.
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