Despite DeFi Pivot, Tron (TRX) Just Formed This Harrowing Technical Signal
- Tron has dropped in tandem with the rest of the crypto market over the past week.
- The prominent altcoin has dropped around 40% from its local highs around $0.05, in fact.
- The cryptocurrency is up 5.5% in the past 24 hours.
- Unfortunately for TRX bulls, the cryptocurrency has formed a pivotal sell signal.
- The sell signal is a Tom Demark Sequential “9.”
- The Sequential is a time-based indicator that forms “9” and “13” candles when an asset has reached an inflection point in its price trend.
Tron Forms Pivotal Sell Signal After Indicator Marked March Lows
Popular altcoin Tron (TRX) has undergone quite the rally over the past few months as the altcoin market has undergone a bullish reversal. Against Bitcoin, the price of TRX has gained in excess of 100% in the past month.
The cryptocurrency’s bull trend against Bitcoin, though, may soon be reaching a local high.
The Tom Demark Sequential recently formed a pivotal sell signal on the one-week chart for the cryptocurrency’s Bitcoin pairing. The indicator formed a “sell 9” signal on the current candle, suggesting that TRX has peaked against Bitcoin for the time being.
The Tom Demark Sequential is a time-based indicator that prints “9” and “13” candles when an asset has reached an inflection point. This recent signal suggests that Tron is subject to a multi-week correction against Bitcoin. This is in line with the sentiment that altcoins are primed to reverse as Bitcoin undergoes a correction.
Chart of TRX's price action against BTC over the past year or so with the Tom Demark Sequential indicator by a Telegram channel tracking the indicator. Chart from TradingView.com
Tron’s price action has historically responded well to the Tom Demark Sequential. For one, when the TRX/BTC pairing hit the lows in March, a “buy 13” signal was formed that marked a multi-month reversal.
DeFi Pivot Could Boost TRX
Tron’s ongoing pivot to decentralized finance, though, may allow the asset to stave off a correction.
Developers of the network and the Tron Foundation itself have been pushing the DeFi narrative heavily over recent days. There are now a number of Tron-based DeFi protocols that mimic those seen on Ethereum, such as how Just mimics MakerDAO or how JustSwap is just an adapted version of Uniswap.
TRX may benefit from this pivot of Tron being a decentralized blockchain for gaming and gambling to one for a decentralized economy.
Photo by Stephen Leonardi on Unsplash Price tags: trxusd, trxbtc Charts from TradingView.com Despite DeFi Pivot, Tron (TRX) Just Formed This Scary Technical Signal