The Tron (TRX/USD) price is under intense pressure as demand for altcoins fades. The coin is trading at $0.0600, which is about 66% below the year-to-date high of $0.1780. It has a market capitalisation of more than $4.2 billion, making it the 25th biggest cryptocurrency in the world.
Tron has been pressured
Tron and other altcoins have struggled in the past two months. Indeed, the total market capitalisation of all cryptocurrencies tracked by CoinMarketCap has dropped from more than $2 trillion to more than $1.37 trillion.
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There are several reasons why cryptocurrency prices have crashed. First, China has intensified its battle against the coins. The country has cracked down on cryptocurrency miners and ordered its financial services companies to avoid the sector.
This week, China requested banks and other financial companies like AliPay not to do business with companies that deal with cryptocurrencies. The Central Bank also shut down a crypto software company.
Second, Tron prices declined as investors started taking profit after more than doubling their money. Historically, asset prices tend to decline after recording substantial correction after having a major rally. Before the recent crash, Tron was up by more than 2,175% from its lowest level in March last year.
Further, Tron and other digital currencies retreated because of the relatively hawkish Federal Reserve as the US economy rebounded. Indeed, the recent FOMC minutes showed that more Fed officials were considering starting easing the quantitative easing asset purchases.
Meanwhile, activity in the Tron network has remained strong. Indeed, this week, it emerged that the circulating supply of USD Coin in Tron rose by more than $108 million less than a month after it was unveiled. The first transfer of USDC on Tron happened on June 11. The report came a few months after it emerged that the amount of Tether on Tron had passed that in Ethereum.
Tron price prediction
The daily chart shows that the TRX price rose to a year-to-date high of $0.1725 early this year. It formed a double-top pattern at that level. The neckline of that pattern was at $0.09072. The coin then declined by more than 48% below that neckline.
Today, Tron is below the neckline and the 50-day exponential and volume-weighted moving averages. It also remains substantially below the descending trendline shown in black. The Relative Strength Index (RSI) has moved to 40. Therefore, the overall trend will remain bearish so long as the price is below the neckline and the two moving averages.
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