Whenever a new cryptocurrency suddenly enters the top 10 ranked by market cap, there is always a concern that it could be part of an elaborate pump-and-dump cycle. Although the jury is still out on whether or not the Tron price was heavily pumped, the currency is losing ground pretty quickly. Just a few days ago, the Tron price was close to US$0.26, whereas it is now headed below US$0.12. It seems this flavor of the week is running out of steam pretty quickly.
TRON PRICE KEEPS DROPPING LOWER
For those unaware of what Tron is or does, the project positions itself as an open-source decentralized content entertainment protocol. The team aims to build a free worldwide content entertainment protocol using blockchain and distributed storage technologies. Although this concept sounds interesting, there is very little code to back up any of these aspirations right now. It is not uncommon for currencies to rise in value based on hype and speculation alone, though.
Over the past few weeks, we have seen Tron enter the cryptocurrency top 10 ranked by market cap. After the Tron price got inflated rather massively, its value even peaked at US$0.279. That’s quite a steep value for a project that is merely based on a whitepaper right now with no real working product to speak of. No one doubts the developers are working hard to bring this technology to market, but for now, we have to deal with the situation at hand.
Moreover, it seems most of Tron’s “announcements” have to do with getting listed on new exchanges. It’s good to see trading platforms show an interest in TRX, but all of this further confirms that a hype cycle is determining the Tron price first and foremost. The latest “big” announcement involved Cobinhood adding a TRX trading market come January 12. That isn’t necessarily the sort of thing that will help a decentralized entertainment content system develop. Even so, people are still willing to pay US$0.14 per token right now.
One thing this altcoin has working in its favor is that there’s plenty of trading volume. More specifically, Tron has seen US$1.22 billion worth of trades in the past 24 hours, which is more than most other altcoins these days. At the same time, it seems most people are interested in selling first and foremost. With the price having dropped by 12.07% against USD, 8.46% against BTC, and 17.59% against ETH, things are not looking all that great for TRX holders.
The majority of Tron’s current trading volume is coming from Binance’s BTC and ETH markets. There’s also one fiat currency-based market among the top 3, which is Coinnest. Unsurprisingly, it’s South Korean traders who are keeping the Tron price well above US$0.14 for now, as it’s trading at US$0.1813 on Coinnest. It’s unclear why CoinMarketCap.com doesn’t exclude this exchange’s price, as it has done so for all other KRW trading pairs in the past two days. Western exchanges all trade Tron well below US$0.14 right now.
Depending on how one looks at the charts, things either look bullish or extremely worrisome for the Tron price right now. Given the currency’s past value of US$0.05 a week ago, the current price is still bullish. However, ever since the mega-pump ran out of steam, there has been zero interest in keeping the Tron price above US$0.15. The current price represents a near-50% retracement over the past five days, which is anything but positive. It will be rather interesting to see how things play out for this altcoin in the coming days.