TRX/USD remains within a choppy trading state, with this being the case since the cooling from 24th December high print. The easing was seen not just with TRX but across the cryptocurrency market. As a reminder, TRX was one of the real standout performers during the bull run of 16th December to 24th. The price had gained a whopping 85%, rocketing up from $0.01227 to the high print of $0.02440. It had managed to move back to its highest levels seen since 7th November, pre-fall levels.
Despite the current choppy nature, over the past 13 sessions, price action has formed a bullish pennant pattern formation. This appearing to be lined up for a potential breakout to the upside, which will likely invite some further aggressive buying.
Tron Complete Round 8 of Coin Burn
The founder of Tron, Justin Sun, recently posted an update via Twitter, regarding the completion of the most recent ERC20 token burning, the eighth round. Over 182 million tokens were burnt. Sun tweeted: “TRON completed the 8th ERC20 token coinburn of 182,359,804.286079 TRX, we welcome the supervision from our supporters and believers.”
Tron Foundation has been regularly burning ERC20 tokens. This has been the case since their MainNet launch, which was back in June 2018. In terms of the token burn, it is considered to be the final action towards switching away the Ethereum platform.
Technical Review – TRX/USD
As described above, TRX/USD has formed a bullish pennant pattern. Price action has been narrowing within this and likely to see a breakout soon. The above trend line of the formation, which is acting as resistance, this can be seen tracking at $0.02100. Should the bulls manage to force a breach, this should open the door to further buying pressure. Lower trend line support of the pennant is tracking at $0.01950.
If this pennant pattern plays out to the textbook, eyes will be on a move heading back towards the $0.03000 territory. There is an area of supply seen tracking at $0.02600-0.02800. The bulls have faltered in this supply zone on several occasions, running from August up to October. Aside from this, TRX/USD should be able to reclaim $0.03000.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.