TRON has recently managed to join the top 10 ranked cryptocurrencies after overtaking Monero. The cryptocurrency continues to make headlines as the project development and adoption grows over time.
One of the most talked-about piece of news is regarding Justin Sun’s plans to include zk-Snarks into the codebase of Tron, effectively turning TRX nto a privacy-focused cryptocurrency. zk-Snarks will introduce zero-knowledge proofs to the TRX blockchain which essentially increases anonymity by shielding users addresses and hiding the transaction amount from the blockchain.
This, in turn, makes it extremely difficult for detectives to investigate the blockchain and backtrack where certain transactions may have originated from. In a world where data is the most important asset, privacy should be at the forefront for any big data company.
TRON has plans to integrate ZK-SNARKS before the end of Q1 2019.
To add further to the great news for TRON, the project has recently surpassed Ethereum in total number of dapp usage. More projects continue to migrate away from Ethereum and other decentralized operating systems to conduct business on the TRON blockchain.
One of the latest projects to migrate over is the game Bitizens, created by BitGuild in the hopes for a stronger and more vibrant ecosystem for their community.
Let us take a look at price action for TRX/USD over the short term and highlight any potential areas of support and resistance moving ahead.
Over the past 24 hours, TRON has fallen by a significant 8.08% as the cryptocurrency drops to a price around $0.013, at the time of writing. The cryptocurrency has seen a serious 45% price plummet over the past 30 trading during the entire cryptocurrency industry wipeout.
TRON is now ranked in 10th position and presently holds a market cap value in the region of $863 million.
Analyzing price action from the short-term perspective above, we can immediately see the impact that November’s bearish pressure had upon the market.
Price action fell from a high above $0.025 and continued to fall until reaching support at a downside 1.618 FIbonacci Extension level (drawn in purple) priced at $0.01123 toward the end of November 2018.
As the market reached this area of support, we can see that the bulls attempted to make a recovery but ran into resistance provided by the short-term bearish .382 FIbonacci Retracement level (drawn in red) priced at $0.01637.
If the sellers continue to pressure price action below the most recent low in November 2018, we can expect the bearish momentum to push the TRX/USD market further lower.
The first original level of support beneath the market lies at the psychological round number handle at $0.012, followed closely by the previous downside 1.618 Fibonacci Extension level (drawn in purple) priced at $0.01123.
If the sellers continue to push the market further below the $0.01123 handle, we can expect further support below to be located at the medium-term downside 1.272 Fibonacci Extension level (drawn in red) priced at $0.009766, followed by the 1.414 Fibonacci Extension level (drawn in red) priced at $0.006269.
If the bears can defend the $0.012 handle and begin to push price action higher, we can expect immediate resistance toward the upside to be located at the previous 1.414 and 1.272 Fibonacci Extension levels (drawn in purple), priced at $0.01336 and $0.01484 respectively.
Further resistance above this will then be located at the short-term bearish .382 and .618 Fibonacci Retracement levels (drawn in red) priced at $0.01637 and $0.01957, respectively.
The technical indicators within the market are currently still favoring the bears at this moment in time.
The RSI is trading below the 50 handle as the sellers remain in control of the market momentum. The RSI did attempt to break above the 50 handle recently but was turned away as the bulls failed to regain any control within the market.
If we would like to see a form of recovery for TRX/USD, we would need to see the RSI break above the 50 handle.
November 2018 has been a very sour month for the entire cryptocurrency industry. However, December 2018 looks like it could shape up to be considerably worse, especially if Bitcoin continues to create fresh yearly lows over the next few weeks.
The $0.011 support handle will be a critical level for the bulls to defend within TRX/USD. If the bulls can defend this level, it should prevent price action from continuing its bearish trajectory.
Unfortunately, however, there is no indication from the bulls that they will wish to do this as the market is likely to head toward the $0.010 handle soon.
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