Today we’re going to take another look at TRON, which has just announced some big news. The TRON team has announced a partnership with Tether, which will bring the biggest stablecoin onto the TRON blockchain. This may be awesome news, but is it enough to shift the current bearish price action for TRX?
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So how does this whole Tron-Tether partnership work? As you may remember, stablecoins are backed by fiat currency, which means each Tether token is supposed to be backed by a real dollar in the. That it easier to move money or spend value. Instead of having to worry about TRX-USD exchange rates, you can just trade stablecoins, which are always worth a dollar.
Tether already works on the Bitcoin, Litecoin and Ethereum blockchains, and it could make a big deal for TRON’s liquidity. It could also attract new businesses and investors since they can use TRON without worrying about the volatility. TRON Founder Justin Sun released a statement, saying:
“Our collaboration with Tether to bring a USDT TRC-20 token to TRON will bring incredible stability and confidence to users. As we perform and execute on our vision, they can easily redeem their tokens for US dollars.”
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The news rightfully brought a breath of bullish air in Tron’s longer-term bearish momentum on Monday.
A bullish engulfing candlestick was formed which could sometimes be a bullish reversal indication. However, we remain skeptical that this news had any long-term bullish impact on the TRX/BTC pair. Why?
TRX/BTC Price Action Analysis
The biggest reason is that the pair just confirmed a break below the daily Ichimoku cloud last week with other Ichimoku indicators such as the Tenkan line and the Kijun line presenting a deadcross. The future cloud is also bearish. So Monday’s bullish market sentiment could be considered that temporary pullback that normally happens after an Ichimoku crossover. The pullback could continue another few days and help the pair reach the 50% Fibonacci retracement level before further drops. However, based on this study, we could expect the current downtrend to get back on track and drive TRX towards the 23% Fibonacci level shown in purple.
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That’s my take on TRON for you today, and now it’s your turn. After you subscribed, head over to the comment section, give me a shoutout and let me know if you think the TRON/ Tether partnership is a hot enough announcement to defy any Ichimoku analysis.
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