Tron (TRX) has been on a long streak of hibernation. The above daily chart for TRX/BTC shows that Tron (TRX) lost all its rage and thunder when the correction set in. Before that, Tron (TRX) was like favorite son to most crypto investors. However, not many of those investors attempted to show Tron (TRX) any love during the correction as they allowed the price to plunge more than 90% during the past few months. The sentiment on Twitter for Tron (TRX) is more bullish than ever, but buyers are nowhere to be seen.
Tron (TRX) has officially launched its Tron Virtual Machine (TVM) today. This development had the same effect as can be expected in times like these when traders, not investors dominate the market. The volume is low and the only people to be credited for that volume are traders who buy the rumor and sell the news. The rest of Tron (TRX) investors have their coins locked up in wallets which does not influence the price. This means that the current prices of cryptocurrencies in general and Tron (TRX) in particular are not indicative of the real interest in these coins or their true value.
The price of Tron (TRX) plunged more than 11% on the day Tron’s TVM was launched. This may mislead some investors into thinking that Tron (TRX)’s TVM launch was a failure and that investors are not interested in such gimmicks but that is actually not the case. There are two types of Tron (TRX) investors, retail hodlers, retail traders and whales. The retail hodlers will keep on hodling their coins on an offline wallet which will have no positive effect on the price of Tron (TRX). Retail traders will keep on trading the waves up and down and their actions will have the most effect on the price of Tron (TRX). Then there are the whales who are only interested in medium to long term plays. Their actions have significant impact on the price of Tron (TRX) but they do not buy until the price has bottomed out. Even then, they buy smartly, using most new retail investors as fodder.
The above chart for TRX/USD shows that Tron (TRX) really has been a sleeping giant this entire time of correction. The price has been trading in a falling wedge for a long time and has now reached a point where it will have to break out. Since Tron (TRX) already had a correction of more than 90%, it is likely that the price will break out of this falling wedge to begin a new cycle by the end of September at the latest.
So far, the price has been in a correction but unlike most altcoins, Tron (TRX)’s correction has been more of a consolidation. The price seems to be forming a giant bull flag in addition to trading in a falling wedge. Both of these are extremely bullish indicators. With the positive developments up ahead under the leadership of Justin Sun, it seems like Tron (TRX) is just preparing for a real rally that might surprise many in the crypto community in the months to come.
