This past week has been terrible for the cryptocurrency market, and the price of Bitcoin and other digital currencies has been going down heavily. Tron (TRX) has weakened more than 15% since November 06, falling from $0.065 to a low of $0.052. But where is the price of Tron (TRX) going next, and what can we expect from the rest of November 2022?
The collapse of crypto prices was caused by the FTX crypto giant and its founder Sam Bankman-Fried going bankrupt and ended up with a huge liquidity gap of over $8 billion that ‘SBF’ tried to raise from investors.
Today, Crypto Lists will discuss TRX price estimates from a technical and fundamental analysis perspective. The current Tron (TRX) price stands at $0.054, which is approximately 40% off from its 2022 highs registered in May. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk and how much margin you got if trading with leverage.
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Overview of Tron (TRX)
Tron is a blockchain-based entertainment content-sharing platform that has gained incredible traction in recent years, with millions of users and upwards of billion transactions. It allows users to create content and applications without having to rely on centralized services, and it is important to note that it also represents a direct challenge to the media industry, including web-based giants like Netflix and Amazon.
Tron also enables creators to sell their work directly to consumers, representing a benefit for both sides. The cryptocurrency powering the Tron blockchain is called Tronix (TRX), and it can be used to pay the content creators to access their applications.
FTX Group filed for Chapter 11
Many cryptocurrencies, including TRX, came under selling pressure this trading week as FTX Token (FTT), the digital coin issued by Sam Bankman-Fried’s cryptocurrency exchange FTX, dropped to its lowest level since February 2021 amid growing concerns about the finances of Alameda Research, SBF’s hedge fund.
Last Friday, the FTX cryptocurrency exchange filed for bankruptcy, according to a statement posted on its Twitter profile. FTX’s Sam Bankman-Fried has stepped down from his role as CEO, while FTX Group, which consists of FTX.com, FTX US, Alameda Research, and ~130 affiliated entities, have all filed for Chapter 11. John Ray III is succeeding Sam Bankman-Fried as the new CEO. John Ray said:
“The FTX Group has valuable assets that can only be effectively administered in an organized, joint process. I want to ensure every employee, customer, creditor, contract party, stockholder, investor, governmental authority and other stakeholder that we are going to conduct this effort with diligence, thoroughness and transparency.”
The cryptocurrency market erased almost all of its Thursday gains minutes after the bankruptcy announcement, and the risk of further declines is still not over. Salah-Eddine Bouhmidi, head of markets at I.G. Europe, believes that the price of Bitcoin is on track to plunge to $13,500 by the end of the year, and if this happens, TRX will certainly be at a much lower price level. This is because Bitcoin tends to set the trend for the whole market.
On the other side, the weaker-than-expected reading on core inflation that was driven by the sharp 0.4% drop in core goods prices lifted investment sentiment on the stock markets. The softening in October inflation is certainly positive news, and according to Bank of America, the U.S. central bank could ease its monetary policy.
Cooling inflation would probably push the Federal Reserve to take a less aggressive stance in its interest rate hikes, and because of this, Bank of America is now more confident in a downshift to a 50bp rate hike in December.
Technical analysis for Tron (TRX)
Tron (TRX) has weakened from $0.065 to $0.052 since November 06, 2022, and the current price stands at $0.054. Tron (TRX) might have a hard time holding above the $0.050 level in the upcoming days, and a break below this level would indicate that TRX could probably test the price level at $0.040.
On the chart below, we can see that Tron (TRX) has been moving in the range from $0.050-$0.070 for a while, and as long the price of TRX is below $0.070, it remains in the SELL-ZONE.
Important support & resistance levels for Tron (TRX)
On this chart (the period from March 2022), I marked important support and resistance levels that can help traders to understand where the price could move. Tron (TRX) remains under pressure, but if the price advances above $0.065, the next target could be resistance at $0.070. The current support level is $0.050, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $0.045. If the price drops below $0.040, which represents very strong support, the next target could be located around $0.030.
What speaks for the rise in the Tron (TRX) price
The last several days have been extremely taff for the cryptocurrency market, and cryptocurrencies have been suffering as the FTX crypto giant and its founder Sam Bankman-Fried went bankrupt and ended up with a huge liquidity gap of over $8 billion. Tron (TRX) remains under pressure, but if the price advances above $0.065, the next target could be resistance at $0.070.
What indicates further downfall for Tron (TRX)
Tron (TRX) has weakened more than 15% since November 06, falling from $0.065 to a low of $0.052. The current Tron (TRX) price stands at $0.054, which is approximately 40% off from its 2022 highs registered in May. Tron (TRX) might have a hard time holding above the $0.050 level in the upcoming days, and a break below this level would indicate that TRX could probably test the price level at $0.040.
Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.