Tron (TRX) Price Analysis – February 15

  • The bears are in control of both the medium and short-term outlook.
  • Traders may consider selling after bearish candlestick formation at key area as entry confirmation.

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. $0.02450 in the supply area was the lower high while $0.02360 in the demand area was the lower low of yesterday's session. The formation of the lower high and lower low is down trending market features.

The gravestone formation at today’s opening is an indication of the bulls' presence. TRXUSD was up at $0.02438 in the supply area as the bulls lost momentum and the candle closes with a wick.

The bulls area briefly in charge to give the lower high. This may be at the 23.6 fib area which is at $0.02456. This fib area is a trend continuation zone. The bears' return is expected to push the price further down below yesterday low.  The bears' target is $0.02100 in the demand area.

TRX/USD Short-term Trend: Bearish

  Tron, TRXUSDTron chart by tradingview

The cryptocurrency is in a bearish trend in its short-term outlook. The bears sustained the downward momentum as yesterday's session ended on a bearish note. $0.02360 was the low of the day.

The bulls staged a brief return after today's opening at $0.02383. TRXUSD rose to $0.02438 in the supply area.

TRXUSD is in a descending channel in the short-term. The bears are currently in control of the market. The price is around the two EMAs and the stochastic oscillator at 68%, with signal pointing down. These suggest a downward momentum in price.

The bears' next target is at the lower line of the channel with the bears' strong pressure and more candles formed below the EMAs crossover.

 

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

It 'Makes Little Sense' to Add Altcoins to Bitcoin Portfolio, Prominent Developer Claims

Prominent Bitcoin (BTC) developer Jimmy Song has argued that diversifying a cryptoasset portfolio “makes little sense.”

More specifically, Song believes adding altcoins to an investment portfolio that has already allocated a certain percentage to Bitcoin will not improve the chances of receiving a higher return on invested capital.

Asset Diversification “Makes Sense” For Traditional Investment Portfolios

As Song explained, usually investors seek to diversify their investments in order to statistically reduce the risk of “permanent loss” and reduce the negative effects of volatility.

Acknowledging that asset diversification “makes sense” for more traditional investments such as acquiring shares of common stock in listed companies (as these are based on fairly safe assumptions and are regulated in a more consistent manner), Song wrote:

The reality of a cryptocurrency [and related investments] is in the code which, unfortunately, is very dense, hard to read and impossible to understand for a large [number] of people.

The Bitcoin developer explained that cryptocurrencies exist in a “digital realm” which means that the code and the network on which they are built is their “reality.”

Although the “underlying reality” of cryptocurrencies can be analyzed, Song believes it’s not practical “even for experienced developer” to fully comprehend and determine the legitimacy of a cryptocurrency platform in a reasonable amount of time. This, as the computer code used to develop a cryptocurrency might be too complex for most people to fully understand.

Song also mentioned that in most cases there’s “an abundance of marketing material” about various cryptocurrency projects. According to Song, marketing strategies for cryptocurrencies involve writing fancy whitepapers “that purport to show the details of the actual system, but are not rigorously defined like code is.”

Promoting “Marketing Stories” Is “Cheaper And Easier”

Although this documentation is more “understandable”, it is usually released before the actual product (the cryptocurrency) is created, Song noted. He also revealed that the “difficulty and/or expense” of accurately determining the legitimacy and usefulness of cryptocurrencies often leads to people promoting the “marketing story” as a “shortcut.” This, as it’s “cheaper and easier”, Song claims.

Song further explained that the marketing strategies related to traditional stocks “cannot diverge much without … serious penalties.” However, in cryptocurrency, Song wrote that there is “no enforcement mechanism” which would require the “reality to conform” to regulatory guidelines or some other objective evaluation criteria.

Instead, Song thinks there are “incentives to over-promise on the story and under-deliver on the reality.”

More Than 500 Active Bitcoin (BTC) Developers

Meanwhile, Song argued that investing in Bitcoin (BTC) makes sense because it has been “pored over technically by thousands, if not tens of thousands of people over the years.” Moreover, the developer noted that because Bitcoin is the very first cryptocurrency, its codebase has been carefully studied and scrutinized by a large number of software architects throughout the world.

Notably, Song revealed there are currently over 500 contributors that are involved in the ongoing development of the Bitcoin protocol. This makes Bitcoin the “largest open-source cryptocurrency project”, Song added.