Last week we talked about how TRON’s TRX could reach and surpass its all-time-high level soon, and on Monday it sure confirmed a break above the 0.085 resistance level. What's behind the surge and what could happen next? Read on!
TRON's Price Action
TRON continued to remain the winner in the top 20 cryptocurrencies, showing a 72% gain in the past week and a 13% gain on Monday alone, while the rest of the market was either consolidating or showing weakness.
After consolidating for about two months post-ICO, TRX/USD confirmed above the daily Ichimoku cloud on April 19th. It has since surpassed all bullish targets and resistance levels associated with our Ichimoku-based analysis.
The gains also helped the cryptocurrency jump up on the market cap list, from number 11 to number 9 according to coinmarketcap.com. Its market capitalization is at $6.4 billion at the time of writing, trailing behind Stellar and Litecoin.
Whats' Behind TRON's Gains?
While TRON has been getting listed on different exchanges such as Zebpay, one of India’s leading cryptocurrency platforms, some suggest the real reason behind its surge could be due to a rumor that Alibaba (NYSE:BABA) could partner with the company soon.
The reason behind the circulation of this rumor is that Tron founder Justin Sun is believed to have strong connections with Alibaba. So the market participants are speculating he will leverage this relationship to ink a strategic partnership with the firm.
Assuming this really is the reason behind the surge, we could expect a buy-the-rumor, sell-the-news type of reaction once everything is out in the open, which could lead to a pullback in TRON’s TRX value.
As the 4th point of the IDDA technique, you must calculate your risk tolerance before deciding on the investment strategy that is suitable for your portfolio.
Don't forget to complete your risk management due-diligence before developing your investment strategy.
*This article was originally published here.