The outlook on the price action of Tron has been bearish throughout 2022, partly due to the general crypto winter that has endured throughout the year.
However, the recent price action on the cryptocurrency now hints at a double-digit upswing, following Tron founder Justin Sun and FTX’s Sam Bankman-Fried’s move on the Chinese crypto exchange Huobi Global last week.
This month, Sun acquired a 60% stake in Huobi Global. This comes when CEOs and several other billionaires are starting to bail out several failing exchanges and Defi platforms affected by the crypto winter.
Right after the news of Justin Sun’s acquisition of Huobi Global broke, the token Tron (TRX) shot up by 6% after finding support around the $0.05858 level.
Investors can now expect more upside movement to the $ 0.070 level after a bounce from this important support.
TRON Price Outlook
The price of Tron has dropped massively from its all-time high. In April 2021, TRX auctioned at about $0.18. The cryptocurrency is now priced at $0.0618 after dropping 65% from those highs.
As illustrated above, the price of Tron has been in an ascending triangle since its all-time high in April 2021. The cryptocurrency is currently at the $0.618 level. It may experience a 59% dip if it drops below this level.
However, Tron appears to have found more investors to join the bullish movement at this support level and is now pushing forwards with bullish strength. This is evident from the 6% upswing the cryptocurrency has experienced over the last week.
From here, Tron is expected to move 20% upwards and retest the $0.0702 level.
Conversely, If the bears fail to hold the support around $0.005858, Tron is expected to sink to the $0.0450 level.
Was Justin Sun Involved in This Uptick
This isn’t the first time cryptocurrency entrepreneur and business executive Justin Sun has influenced the price of cryptocurrencies.
The price of Tron experienced similar upticks in 2021 after several news items of on-chain development on the Tron ecosystem hit the internet.
As with the recent acquisition of Huobi Global (possibly with the help of FTX and Sam Bankman-Fried) and the rise in the price of Tron, it is also worth noting that the price isn’t the only thing about the TRX ecosystem that increased.
The Total Value Locked on TRX has just exceeded $12.5 billion, and the number of new addresses created on the network exceeded 115 million, less than two months after TRX became the second largest blockchain by Total Value Locked and stablecoin market cap.
As it currently stands, TRX has a market cap of about %5,947,214,346, making the cryptocurrency the 15th largest in the world by market cap.
Disclaimer: The author’s comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)
