The days leading up to the TRON (TRX) test net launch are causing the market price to spike. The asset has also become one of the most actively traded on Binance. On Thursday, TRX added a slim 1.6%, still a feat given the sharp drop in Bitcoin and across all markets. TRX reached a price of $0.046, up around 24% in the past days.
The recovery seems rather slow compared to the vertical rise of the prices in December. TRX has had similar recoveries in the past, which also slowly unraveled. In the coming months, the crypto market will have to show whether altcoins regain their appeal, and if the summer months bring another bull market, akin to 2017.
Justin Sun
#TRON Test Net Launch Countdown 2 days, 50 hours, 3,000 minutes, 183,000 seconds! #TRX $TRX
For now, TRX has a few more days of hype, but sometimes, even positive news don’t manage to stem falls, especially in case of concerted selling. The recent growth in TRX may increase its visibility as the asset makes a return into the top 10 of coins.
It must be remembered that TRX remains a token mostly dependent on Asian trading. The project also relies on Asian partnerships, and the real work of the network remains to be seen in the coming years. Investing in TRX for the longer term may also mean the potential for losses, if the project loses credibility along the line. However, trading TRX may still be attractive, especially given temporary spikes in exuberance, as well as marketing efforts and announcements from the team.
The TRON project suffered a fate similar to that of Verge (XVG), which has lost credibility due to the sudden and deep losses, as well as the dwindling trading. The crypto community has spread quite a bit of negative messages about TRX. But at the new, lower price level, TRX is beginning to find supporters again. Given that most altcoins remain largely unknown, speculative trading may return to the market.
During the current rise, buyers who were standing on the sidelines may jump in, especially given the rising prominence and interest in trading on the Binance exchange.