Tron (TRX) Price Analysis – February 14

  • The medium and short-term outlook is in a bearish trend.
  • Responsible selling at key ares

Tron, TRXUSDTron chart by tradingview

TRX/USD Medium-term Trend: Bearish                                 

  • Supply zones: $0.04000, $0.05000, $0.06000
  • Demand zones: $0.01000, $0.00900, $0.00800

TRON is in a bearish trend in its medium-term outlook  The bears' pressure broke the lower demand area of yesterday's range at $0.02450. This pushed the price further down to  $0.02413 in the demand area butt a retest of the broken area was made.

Wicks - an indication of exhaustion - were seen in the area which further confirmed the bears return to continue the downward continuation in the medium-term.

The price is below the two EMAs and the EMAs are fanned apart which connotes strength in the context of the trend and in this case the downtrend. The stochastic oscillator is in the oversold region at 11% and it signals points down which suggest downward momentum in price.

TRX/USD Short-term Trend: Bearish

  Tron, TRXUSDTron chart by tradingview

The cryptocurrency is in a bearish trend in its short-term outlook. The bullish pressure was lost at $0.02545 in the supply area as the bears took over due to the inverted hammer formation. TRXUSD dropped to $0.02413 in the demand area.

A minor pullback due to the bullish railroad set in late yesterday with the price up at $0.02474  in the supply area shortly after today’s opening.

The price is below the two EMAs and the stochastic oscillator signal points down at  38%. an indication of downward momentum in price in the short-term.

 

The views and opinions expressed here do not reflect that of CryptoGlobe.com and do not constitute financial advice. Always do your own research.

Blockchain-Enabled Chinese Yuan Could Increase Governmental Oversight, Investor Argues

The Chinese government has been closely studying blockchain technology in order to determine whether the immutable distributed ledger can be used to streamline routine business processes.

However, Chinese authorities have expressed concerns regarding the use of cryptocurrencies in financing illicit activities and potentially disrupting the country’s $12 trillion economy by facilitating capital flight.

People’s Bank of China Considering Blockchain-Based Yuan

While China’s government has attempted to restrict transactions involving cryptocurrencies, the People’s Bank of China (PBoC) has reportedly been conducting research to determine the feasibility of launching a blockchain-based Chinese yuan (CNY) since 2014.

This, according to Dovey Wan, a founding partner at Primitive Ventures, a “market cycle agnostic” investment firm which has invested undisclosed amounts into various cryptoasset projects such as ZCash (ZEC) and DFINITY.

Wan, who earned her Masters in Information Systems from Carnegie Mellon University, wrote in a blog post published on CoinDesk on May 17, 2019 that the digital yuan, or Renminbi (RMB), initiative may potentially allow the Chinese government to exercise greater control over the nation’s local and international economy.

M0 Versus M2

As explained by Wan, digital fiat currencies allow financial institutions to more effectively create credit flows which increase M2, the broad money supply. Meanwhile, blockchain-based digital currencies impact a base currency measure, referred to as M0.

Blockchain-enabled digital currencies could potentially allow central banks to “bypass commercial banks” in order to directly control money creation and supply channels. This would structurally centralize the central financial institution’s power and role in formulating monetary policy, Wan argued.

Chinese Government Will Most Likely Use Permissioned Network

According to Wan, the PBoC is looking at various types of network design for a digital, blockchain-powered RMB. She believes that it will most likely be a permissioned network in which the nodes will be managed by major Chinese financial institutions, including the PBoC.

This indicates that transactions involving a digital yuan would only be seen by Chinese banks, and not the nation’s citizens.

Blockchain-Powered Currencies Enable “Better Coordination Paradigm”

One of the main reasons for using blockchain technology, Wan noted, is to take advantage of “a better coordination paradigm” when compared to “traditional currency supply management, which is heavily dependent on bookkeeping,” Wan wrote.

Moreover, Wan thinks blockchain’s immutable nature and private-key cryptography can prohibit users from entering fraudulent transactions and also prevent users from counterfeiting currency notes.

A blockchain-based yuan could also assist the Chinese government in more carefully monitoring the spending history of the nation's residents. This would allow the government to "accurately assess creditworthiness" and detect illegal activities such as money laundering and tax evasion, Wan noted.