At the beginning of this year, we posted a trading idea for the TRX coin, where we recommended making medium-term purchases almost at the very bottom. đ
The other day, the coin reached the first goal of the idea and brought more than +59.89% profit. We recommend placing a stop on the remaining position at $0.067
đŒ What is the reason for the growth?
We all use stablecoins and this has already become very much part of our daily lives. We are sure that most of you use the USDT stablecoin on the TRC-20(TRON) network due to the cheapest transfer fee. And to use this stablecoin you need to pay a transfer fee in $TRX coin. Actually, that is why there is an ongoing demand for this coin.
You can see in the picture how much the number of transactions and activations of smart contracts within the TRON network has grown over the past year.
But that is not all! This year, the number of TRX token burns in the TRON network has doubled.
Despite the fact that the number of TRX tokens created remained at the same level. As a result, we have TRX deflation, which of course also affects quotes.
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đź What's next?
Let's move on to technical analysis.
The coin has long broken through the upward Triangle pattern that we wrote about in our trading idea. Now locally the coin is moving within the ascending channel above the long-term moving averages. However, a bearish divergence has formed on the weekly timeframe. Also, the indicators are already heavily overbought, and the price has hit the resistance level of $0.082.
We expect a rollback from current prices to at least the lower border of the ascending channel, along which the support level and the long-term moving average MA200d pass. If the price is able to break through this support zone downwards, then the coin will fly to the next support level of $0.55, along which the long-term moving average MA200w runs.
đ The action plan with this coin is as follows:
1. If you are in a position, then place a stop at $0.067
2. If you are without a position, then you can go buy in the area of ââ$0.069-0.07 and place a short stop at $0.067.
3. If in the end the price goes below $0.067, then you can safely place a limit order to buy around the level of $0.55. There is no need to place a stop when the order is executed. Just leave the coin in your briefcase.
đ It is worth selling a coin in parts near the resistance levels marked on the chart.
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