Tron Price Prediction: TRX Bears Enter After Two Straight Days

Daily TRON TRX Technical Analysis

3 Min Read
Last Updated July 23rd 2021
  • The Tron price volatility has been decreasing in the daily time frame.
  • TRX is about to reverse the parabolic SAR from positive to negative.
  • On May 31 and June 1, the Tron price jumped up from $0.0676 to $0.077, gaining $0.01 in its overall valuation. However, following this jump, the bears have corrected the price to $0.075. Prior to this, the Tron price crashed from $0.152 to $0.062, losing $0.090 between May 7 and May 24,

    Is Tron Price Volatility Going Down?

    The overall sentiment for Tron price seems negative. Firstly, the MACD shows sustained bearish market momentum, and secondly, the Bollinger Band has started narrowing to show decreasing price volatility.

    Image: TRX/USD daily

    TRX/USD daily chart 060221

    In the 4-hour Tron price chart, TRX has been horizontally hovering above the 50-bar SMA. The relative strength index (RSI) is moving around the neutral zone, which tells us that the buyers and sellers are pretty much cancelling each other out. However, this could change soon. The parabolic SAR is about to reverse from positive to negative, as per the 4-hour chart.

    Image: TRX/USD 4-hour

    TRX/USD 4-hour chart 060221

    Justin Sun On Elon Musk’s Bitcoin Carbon Footprint Concerns

    Justin Sun, the CEO of TRON, has agreed with Elon Musk’s concerns on the carbon footprint linked with Bitcoin mining. He believes the proof of work (PoW) consensus algorithm has its limitations and urged people to use more green energy.

    Musk had made headlines several weeks ago when Tesla suspended Bitcoin payments for its products. Since then, Musk has repeatedly spoken about the high levels of energy used by BTC. He also urged miners to use more renewable energy.

    His comments started several discussions within and outside the crypto community. During an interview with Bloomberg, Sun referred to Musk’s views as “legit” and noted that the crypto industry needs to find a permanent green energy solution. Sun believes that many miners are already utilizing renewable energy, but the efforts might still not be enough.

    Additionally, he highlighted the merits of the proof of stake consensus algorithm (PoS) over those of the PoW, which Bitcoin uses. He argued that PoS reduces the carbon footprint by up to 99%, which is why more and more blockchain projects tend to go for it. 

    Shortly after Musk’s comment, China reiterated its negative stance on the primary cryptocurrency. Moreover, the world’s most populated nation went after Bitcoin mining this time and caused substantial price disruptions in the crypto market.

    Speaking on the matter, Sun said that "no single person or a factor can control the market.” He believes that the massive 50% correction was supposed to occur at some point as most cryptocurrency assets had surged multi-fold in USD value in the past several months.

    Although China will most probably continue to implement more stringent restrictions on cryptocurrency usage, Sun noted that the industry would keep growing. As such, he concluded that the crypto bull run has only paused now and believes it will resume in July and August this year.

    Tron Price Is Expected To Reach These Levels

    If the buyers take back control of the Tron price, they will be able to reverse the MACD from red to green in the daily chart. This will have a positive effect on TRX and the buyers could potentially take down the $0.084 resistance barrier.

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