On Tuesday, Tron (TRX) reported a huge gain, which turns out to be a double-digit gain and is the most significant among the top 100 cryptocurrencies.
Following reports that Tron Foundation founder Justin Sun bought BitTorrent – the owner of the well known file-sharing client uTorrent- for $140 million, the cryptocurrency apparently picked up a bid.
There have been rumors about this purchase since the end of May and the deal was reportedly signed last week. It is, at this moment, ambiguous how this purchase will aid TRON to cement its reputation as a genuinely decentralized internet.
Sun has, however, remained abnormally quiet about this acquisition as he is generally rather vocal. Notwithstanding, the deal has obviously rewed up the interest of a good number of investors in the cryptocurrency.
At press time, the world’s 10th biggest 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. The cryptocurrency’s market capitalization has gone up $3.2 billion.
In spite of the outstanding profits, it is still premature to call a bullish pattern reversal.
TRON could attack the 100-day moving average (MA), at the moment lined up at $0.0553 in the upcoming days. A break over that stage would certainly uncover the dropping channel challenge, presently seen at $0.0638.
Merely a large volume close (as per UTC) over the dropping channel resistance might ensure a long-run bearish-to-bullish pattern adjustment.
Bearish scenario: TRX is likely to fall to $0.032 (falling channel support) if the bulls fail to defend $0.041 regardless of the optimistic news flow.