Over the past few months, Tron has been one of the cryptocurrencies that dominates major headlines on a regular basis. From the acquisition of BitTorrent to the release of Project Atlas, the Tronix project has continued to develop along its long-term adoption path, releasing products that aim to benefit the Tron ecosystem over the foreseeable future.
The most recent rumored partnership, with the Chinese internet search giant called Baidu, has the potential to be groundbreaking for the entire cryptocurrency industry.
It all began when the news website Coinness released the following tweet:
The validity of the rumor was questionable. Then later the same day, Justin Sun, the rockstar-like leader of the Tron project, released the following tweet:
Sun left us with a guessing game but many have pieced the 2 tweets together and have speculated that the new partnership, expected to be announced at some point this week, is with the Chinese search engine giant Baidu.
Baidu is the leading internet search engine giant in China. It is often described as “the Google of China” as it accounts for up to 66% of China’s search results.
The population of China sits behind the “great firewall” which allows the government to monitor and restrict access to outside tech giants such as Google, Facebook and Instagram. Instead the Chinese “Internet” uses their own tech companies, such as Baidu, which allows them to control the narrative of accessible information.
Depending on the official agreements, a partnership of this magnitude would solidify Tron as a global cryptocurrency both in the West and the East.
If the partnership with Baidu allows for Tron to appear in Baidu searches, this possibly could lead to a larger proportion of the population becoming introduced to Tron which, in turn, could potentially lead to a surge in demand for the cryptocurrency.
However, it is important to highlight that this would be a slow process occurring over a number of months.
The Chinese government has had a rocky relationship with cryptocurrencies which has affected the growth of crypto in this region of the world. If the rumored partnership is true, then Tron will successfully gain an advantage over its competition within China, which could help it to achieve the status of one of the top global cryptocurrencies.
The partnership rumor has not yet caused the TRX markets to rally as the majority of traders wait for the official announcement before becoming committed. However, if the partnership does become official this week, it will change the sentiment for the Tron market and could be the catalyst for the next major TRX bull run.
Tron is currently ranked 11th in terms of overall market cap, with a value of $1.64 billion. It has seen a 22% price increase over the past 30 trading days but is still trading at a value that is 90% lower than its all-time high price.
The recent bullish run of BTC/USD above $7,000 has caused TRX/USD to rise today.
Studying the TRX/USD market from the chart above, we can observe a 75% increase in price when the market began at a low of $0.016 on August 14, 2018 and rose to a high of $0.027 on August 28,
After battling with resistance, the market had rolled over and began to descend during September until meeting support provided by the short-term .886 Fibonacci Retracement level priced at $0.01733. Price action reversed at this support and has proceeded to rally from this price level.
The recent bullish push higher today saw TRX/USD rally into resistance provided by the April 2018 price low at $0.02813. The upside to this market is limited until price action can break above this resistance zone.
If the Tron team officially announces the partnership this week, we can expect the resistance at $0.028 to be quickly overcome.
In this scenario, we can then expect immediate significant resistance higher to be located at the short-term 1.272 Fibonacci Extension level (drawn in blue) priced at $0.031, followed by the short term bearish .236 Fibonacci Retracement level (drawn in red) priced at $0.032.
If the bulls manage to maintain their pressure, then further higher resistance will be met at the 1.618 Fibonacci Extension level priced at $0.035, followed by resistance provided by the psychological round number handle at $0.040.
Alternatively, if the Baidu partnership rumor turns out to be false and the Tron team announces a different partnership, this could have a detrimental effect on price action.
In this scenario, as the TRX/USD market declines, we could expect immediate support to be located at the .382 and .618 Fibonacci Retracement levels, priced at $0.023 and $0.020 respectively.
Further support located below this level can then be expected at the .886 Fibonacci Retracement once again priced at $0.01733.
Related: TRON (TRX) Unveils Major Updates for End of 2018
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