Over the past week, Tron has seen a price increase totalling 14%, bringing the current trading price for the cryptocurrency up to around $0.029, at the time of writing. Furthermore, the 19 month old cryptocurrency has now seen a 31% increase in price over the past 30 days as Tron now sits in 11th position in the market cap rankings with a total market cap value of $1.98 billion.
Tron is intended to become a decentralised content network which will allow content producers to retain all their rights to their content, rivalling companies such as YouTube. The cryptocurrency also functions as a dApp platform which will allow developers to create decentralised applications on top of the Tron blockchain.
The cryptocurrency was founded by Justin Sun, who had also worked with Ripple for a short period of time before shifting over to start Tron. Sun has been regarded as one of Forbes 30 under 30 and is also the protegee of Alibaba billionaire, Jack Ma.
In this article we will take a look at the potential for Tron to reach the top 5 ranked cryptocurrencies by 2020.
The top 5 cryptocurrency rankings are presently held by Bitcoin, Ethereum, Ripple, Litecoin, and Bitcoin Cash. The market cap of Bitcoin Cash is $5.20 billion which is over a significant $3 billion ahead of Tron in market cap value. Tron has a long way to travel before being able to enter the top 5 ranked cryptocurrencies, however, the project has a long list of developments that will potentially aid Tron to reach the top 5 before the end of 2019.
Positive Drivers
CoinPlay
As Tron continues to outperform the majority of competing dApp platforms within the industry, the foundation has recently acquired CoinPlay.
CoinPlay is a blockchain based dApp store which provides software, games, indices and cryptocurrency ratings. The two projects have joined forces as they both have been described as sharing the same vision which is, “providing a better user experience for blockchain practitioners”.
CoinPlay has been designed to make it easier for new entrants to enter the market space. With the increased interest in Tron dApps, this acquisition will make it easier for users to find dApps and developers to list their product on the CoinPlay dApp store.
Tether
At the start of March 2019, Tether had announced that they would be creating a stablecoin based on the Tron blockchain. The USDT stablecoin would be a TRC-20 token that would be interoperable with all Tron based protocols and dApps.
The introduction of a stablecoin on the Tron network will greatly help institutional investors to become interested in the project as they have another option to invest within the project through the Tether stablecoin.
The Tron based Tether stablecoin is set to be launched at some point in Q2 2019. Justin Sun had even come forward and stated it should be released at some point during the start of April 2019– so anytime now!
Odyssey 3.5
Perhaps one of the major updates from Tron was the recent hard fork that had occurred which took Tron into Odyssey 3.5.
The version 3.5 upgrade had introduced Tron to some great new features which help increase security and performance.
One of the most exciting things to come out of version 3.5 is the introduction of multi-signature Tron accounts. This help increases the security for account holders as more than one key is required for the wallet to be accessed.
The upgrade also introduced a superior virtual machine, a 50% performance boost and dynamic energy adjustment in the maintenance of the blockchain.
Bit Speed
Justin Sun is most excited about the impact that the BitTorrent token will have on the Tron project. Sun had acquired BitTorrent in 2018 for a large $140 million price tag. However, the acquisition brought over 100 million BitTorrent users into the Tron project.
The BitTorrent token (BTT) has already been launched upon the Tron network. Now, users can look forward to the introduction of BitTorrent Speed which will allow users to be compensated in BTT tokens for sharing files on the BitTorrent client. BitTorrent Speed is said to be launched at some point this quarter.
TRX Long Term Price Analysis
For Tron to reach the top 5 at today’s market cap values, the cryptocurrency will need to increase past the $0.08 target. Let us take a quick look at the TRX/USD market and highlight some key potential resistance areas on the way up toward $0.08 for Tron.
TRX/USD – LONG TERM – DAILY CHART
Taking a look at the TRX/USD daily chart above we can see that the market has recently managed to break above both the 200 day EMA and 100 day MVA. This is an incredibly sstrongbullish signal for the buyers.
Price action has also recently penetrated above resistance at the bearish .236 Fibonacci Retracement level priced at $0.028. This bearish Fibonacci Retracement level is measured from the May 21, 2018 high of $0.0845 to the December 2018 low.
If the buyers continue to drive TRX/USD higher, initial resistance above will be located at the bearish .382 Fibonacci Retracement level at $0.039. Above $0.040, resistance can be located at $0.050 and at the bearish .618 Fibonacci Retracement level at $0.056.
If the bullish pressure continues to drive the market further higher, the buyers will then run into resistance at the $0.064 level followed with further resistance at $0.070 and the bearish .886 Fibonacci Retracement level at $0.076.
Conclusion
Tron has a lot of things going for itself after the recent version 3.5 upgrade and especially after the acquisition and launch of the BitTorrent token. The 100 million users that will now be exposed to Tron will be paramount in helping Tron climb higher and enter the top 5 before 2020. After the launch of BitTorrent Speed, we can expect more interest to flood into Tron which should help the price increase toward the $0.08 target.
