A turbulent week unfolded for the cryptocurrency market, which ultimately closed with notably positive figures and bitcoin flirting once again with five digits. Midweek volatility followed Mark Zuckerberg’s congressional hearing defending Libra, his stablecoin project. However, comments from China’s president appear to have fueled a rebound that pushed prices above pre-dip levels, producing double-digit gains across the market. The Chinese government urged an accelerated rollout and development of blockchain technology, a move that—at least for now—has restored confidence in the crypto industry. TRON benefited from these statements and from publicity driven by its CEO, Justin Sun, delivering gains of up to 40% over the weekend.
Will TRON announce a strategic partnership with a multibillion-dollar company?
At least that is the promise made by Justin Sun, one of the most visible figures in the cryptocurrency space. The CEO of TRON and BitTorrent posted a tweet on Friday evening, shortly after news that China was encouraging blockchain adoption and development. In his message, he claimed the TRON Foundation had “closed a key partnership with a megacorporation valued at over $100 billion.” Sun stated this deal would not only benefit the TRX cryptocurrency and the tokens that operate within the TRON ecosystem, but would also help distribute TRON’s decentralized applications to millions of users.
#TRON will partner with a hundred billion USD megacorporation next week. It will not only benefit $TRX but all TRC10&20 tokens including $BTT & $WIN etc. It will broadly distribute #TRON Dapps and tokens to billions of customers. TBA. Make a guess?
— H.E. Justin Sun 孙宇晨 (@justinsuntron) October 25, 2019
Investors should still exercise caution. Sun faced heavy criticism after his highly publicized meeting with billionaire Warren Buffett was cancelled, an episode that caused TRX’s price to plunge. Sun, who once appeared on Forbes’ “30 Under 30,” has hosted alleged million-dollar giveaways and even raffled Tesla vehicles via Twitter. Many observers remain skeptical of these promotional tactics.
“In the Top 4 by year-end,” a tweet Justin Sun later walked back
Hours after the partnership tweet, Sun posted another message claiming TRX would reach the Top 4 on CoinMarketCap by the end of the year, according to media reports and archived records. Meanwhile, his Twitter followers began speculating about the identity of the company that could change TRON’s fortunes. The most frequently suggested name was Samsung, a guess fueled by Sun’s confirmed participation in the Samsung Developer Conference (SDC 2019), scheduled to begin soon in California.
TRON was not the only China-based cryptocurrency to react positively to the country’s pro-blockchain statements. Other projects such as NEO, Ontology and Bytom also surged, registering gains exceeding 60% over the past week.
TRON Technical Analysis (TRXUSD): recovery without breaking key levels
As noted above, TRX rallied by up to 40% over the weekend. Still, the rapid ascent may not hold if bulls fail to overcome critical resistance. Despite the gains, the cryptocurrency stalled partway while trying to surpass a key level around $0.021. That support-turned-resistance level had been an important structural support prior to the market breakdown in August, and now represents the first major barrier before a change in market outlook is confirmed.
On a positive note, TRX broke a downtrend line that had persisted for nearly four months, signaling that buyers may be regaining control. TRON also climbed above the 50-, 100- and 200-day moving averages. The MA200, which previously acted as resistance, has been overcome and TRX could retest the MA100 as support before potentially retreating toward the yellow band. On its way up, TRON may face significant volatility and scattered resistance levels, including a wide resistance zone between $0.029 and $0.031. Despite the sharp rise, the daily RSI has not yet crossed into overbought territory.