The TRON Foundation was set up by Justin Sun with the aim of creating a decentralised content sharing platform to change the entertainment industry. Once the TRON platform is fully deployed, it will allow content creators to interact directly with customers, thereby cutting the middlemen including the likes of Apple, Google and Facebook, and ultimately give back full ownership of the content to the creators. To complement the platform, the Tronix (TRX) coin was created, with a total supply of 99bn tokens.

Technical Analysis

While the main purpose of the coin is to act as the native medium of exchange, speculators have been eyeing TRX after an exponential rise in December 2017. However, many hodlers who rode the rally have been hit hard as the coin followed the crypto market in a long and deep correction that saw the price drop by more than 90%.

We are currently approaching the end of the road in this year-long bear market as we enter the final move as a wave (v) of C to complete the larger degree wave (2). The recent spike to $0.03 marked the completion of wave (iv) of C as it hit the 38.2% retracement of the wave (iii) move down, the most common fibonacci level for a wave 4 to hit. 

Elliott Wave analysis TRXUSD – October 29th 2018

Price Forecast

My primary expectation is for TRX to resume the downtrend in the coming days and target the 61.8% retracement of the full wave (1) move at $0.0116, potentially undershooting to hit the 1 cent mark, a strong psychological level for hodlers, some of whom will give up on the coin just as it starts it’s next bull cycle. Given its volatile nature, there is a chance for TRX to drop below that target and aim for the 76.4% level at $0.0053. That really depends on where the price will be once Bitcoin and Ethereum find a bottom, as I expect it to follow the general crypto market trend.

Either way, the ensuing rally looks really promising as it enters the primary wave (3) cycle which will last some 2-3 years. The fibonacci levels project a truly exponential rise that translate to a gain of over 1500x from trough to peak! (yes, you read that right). I will be able to provide a more accurate long-term projection once TRX approaches a bottom. Regardless of the short-term price action, early adopters of the TRON platform will be rewarded many fold for moving to what looks to become a truly decentralised internet.

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Responses

    1. Matthias Post author

      Yeah, there was a LOT of hype around TRX in Dec/Jan but the team has advanced considerably in delivering what they said they would compared to most other projects so it’s not all hot-air anymore.

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  1. SouthernCrossroads

    Nice piece. I’m really curious to see what TRX is going to do with its assets. BitTorrent has so many possibilities. I see a future with a net3.0 based on a blockchain and see Tron as a contender to form its backbone. You might also check out the project CODA. I’m not certain one will win, but several tokens will work together to form the framework.

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    1. Matthias Post author

      TRON is definitely a contender for becoming one of the leading internet 3.0 platforms, but as you said, there will be several players offering similar solutions and that’s not a bad thing as it fosters competition and hence innovation.

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    1. Matthias Post author

      Well, there was definitely a lot of hype at the beginning, but they have been progressing a lot this year and are achieving the targets they set themselves, unlike most other projects.

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