Tron (TRX), the native cryptocurrency of the Tron blockchain, witnessed a substantial increase over the weekend. The token spiked by 10% yesterday, buoyed by recent developments within its ecosystem. However, at the time of writing, it has experienced a slight correction, but all signs show that this could be a bullish signal.
Tron Spike Due To Bittorent Bridge Launch
The reason behind this latest surge can be attributed to the recent launch of the BitTorrent Bridge platform, which now allows users to seamlessly transfer their TRX tokens between the Tron blockchain and Ethereum. Justin Sun, the founder of Tron, confirmed this development on the morning of June 2.
The BitTorrent Bridge serves as a decentralized system that facilitates token interoperability across different blockchain networks. Developed by the Tron organization under the leadership of Justin Sun, this platform strengthens the collaborative efforts between BitTorrent and Tron. A notable instance of their collaboration is the BitTorrent Live streaming service, which was launched in 2019 and operates in conjunction with Tron’s system.
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The integration between TRON and Ethereum through the BitTorrent Bridge opens up new possibilities for TRX users while enhancing the interoperability between these prominent blockchains. This breakthrough expands Tron’s presence within the Ethereum ecosystem and has the potential to drive greater adoption of TRX among Ethereum users.
It is important to note that TRX initially existed as an ERC-20 token on the Ethereum network before being migrated to the TRON main network in mid-2018. Since then, Tron has grown into one of the biggest blockchains and currently processes 40% of USDT transactions.
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Tron Price Analysis
Analyzing Tron’s current price performance, the coin is currently trading at $0.0805. Moreover, Tron has the potential to maintain its position above the moving averages. If the resistance level of $0.085 is breached, it could serve as a catalyst for a bullish trend, potentially leading to further price gains.
The market sentiment appears optimistic as buyers continue to demonstrate a strong commitment. Based on the daily chart analysis, another upward movement in the market price is possible. Therefore, if Tron surpasses the channel’s upper boundary, it could further reinforce the market and reach resistance levels of $0.095, $0.100, and $0.105, respectively.
Conversely, there is a chance of a downward correction, with the support level of $0.082 being a potential target. However, if sellers gain momentum, traders should anticipate a further decline towards support levels of $0.075, $0.070, and $0.065, respectively. Additionally, the Relative Strength Index (14), a technical indicator, is currently situated in the overbought region, indicating the possibility of the bullish trend continuing.
Tron’s price against Bitcoin maintains its position above the 9-day and 21-day moving averages, indicating a potential move towards the resistance level of 330 SAT. However, this resistance level is anticipated to be convincingly surpassed, leading to a market price that closes above it.
-Featured image from Invezz, chart from TradingView.com