Tron (TRX) is reporting double-digit gains on Tuesday and is the biggest gainer among top 100 cryptocurrencies.
The cryptocurrency seemingly picked up a bid after reports started doing the rounds that Tron Foundation founder Justin Sun acquired BitTorrent – the owner of popular file-sharing client uTorrent – for $140 million. Rumors of the acquisition have been floating around since the end of May and the deal was reportedly signed last week.
As of now, it is unclear how the acquisition will help TRON cement its reputation as a truly decentralized internet. Though Sun is generally rather vocal, he has remained unusually silent about the deal. Nevertheless, the acquisition has certainly revved up investor interest in the cryptocurrency.
At press time, the world’s 10th largest cryptocurrency by market capitalization is trading at $0.04938 – up 17.9 percent, having clocked a nine-day high of $0.051107 at 18:44 UTC, according to CoinMarketCap. Its market capitalization has moved above $3.2 billion.
Despite the stellar gains, it is still too early to call a bullish trend reversal, the price chart analysis indicates.
Daily chart
The above chart shows (prices as per Bitfinex) TRX is trapped in a falling channel (bearish setup). So, the broader outlook remains bearish despite double-digit gains seen in the last 24 hours.
That said, the recovery from $0.0374 (June 13 low) to $0.051 (daily high) has neutralized the immediate bearish outlook.
Further, the relative strength index (RSI) has breached the falling trendline resistance in favor of the bulls. Thus, TRX may remain better bid in the next few days.
View
TRX may attack the 100-day moving average (MA), currently lined up at $0.0553 in the next few days. A break above that level would expose the falling channel hurdle, currently seen at $0.0638.
Only a high volume close (as per UTC) above the falling channel resistance would confirm a long-run bearish-to-bullish trend change.
Bearish scenario: TRX will likely drop to $0.032 (falling channel support) if the bulls fail to defend $0.041 despite the positive news flow.
Hot air balloon image via Shutterstock