Tron in Danger of Losing Top Ten Ranking: TRX Price Indicators Don’t Tell the Whole Story
Thanks to a poor performance in the second half of 2018, Tron (TRX) could be on its way out of the crypto top ten. Currently jockeying for position with Cardano (ADA), Justin Sun’s blockchain is going to have to show signs of improvement next year if it wants to remain among the altcoin elite. The latest scare for those already in TRX comes after financial indicators signal a bearish trend that doesn’t look likely to change any time soon. As well as dropping from a high of $0.61 in May, the one-day price index for TRX has continued to show a downward trend. Indeed, looking at the movements on December 11, the USD value experienced a mini-pump to $0.13462 before falling to a low of $0.13096. Based on these fluctuations, the Bollinger bands for TRX have started a convergence which marks a significant bearish trend.
Technical Analysis Belies Tron’s Long-Term Aspirations
The recent technical analysis will come as a blow to a blockchain that’s strived to innovate in 2018. Despite going live in 2017, Tron has attempted to scale up rapidly, launching its Mainnet in April. In deploying 126 nodes across five continents, Tron gave itself the capacity to welcome 100 million users. However, while the fundamentals of the blockchain have been improved, its market position hasn’t. One of the main reasons Tron may not have caught on yet with mainstream investors is its overall aim. As a network, Tron is aiming to create an entire ecosystem based entirely on cryptocurrencies. One of the project’s main aims is to redefine how digital content is handled online and, in turn, how content creators are compensated for their work.
In one breath, Tron is aiming to become the next Ethereum, while in the other it wants to usurp the likes of Google and Facebook. The former goal may be achievable. However, developing a network that fundamentally changes the nature of the internet and makes the likes of Google essentially obsolete is going to be difficult. For that reason alone, the price of TRX may be struggling to generate sufficient interest to stay among the top ten cryptos.
No Crypto is Immune from a Temporary Blip
One saving grace for the future of Tron could be the recent slip by Ethereum (ETH). Much like its counterpart, ETH has struggled to gain any traction in the second half of 2018 and has subsequently found itself lower on the crypto rankings than it was at the start of the year. While scalability issues and disputes over a potential fork have hampered Ethereum’s recent progress, the downswing is proof that any crypto can fall, regardless of how strong its foundations are. What’s more, there are few that doubt ETH will rally in 2019 and use its fundamentally sound technology to reassert its market position.
While TRX is far from Ethereum in terms of size, popularity and longevity, what’s true for one crypto should also be true for another. Beyond that, the analogy “Rome wasn’t built in a day” springs to mind. To fundamentally change the way content is handled online is a lofty goal and one that will take time to achieve. With that being the case, price fluctuations should be seen as a standard. In other words, TRX may be a slow burner. Instead of a flash in the pan, Tron is more likely to light the way into the future. If that proves to be the case, time outside of the crypto top ten would be nothing more than a blip on the coin’s journey to market dominance.
*Information in this article should not be taken as investment as advice
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