This is just a quick follow-up post to my short idea on Tronix from May. Here is the original post. I ultimately got stopped out of the first trade and failed to catch the nearly 50% drop. Despite dropping below the uptrend, TRX rebounded much better than the rest of the crypto market, and remains one of the only coins still above its bull market support. It's been doing better than both Bitcoin and Ethereum for months. So, what's going on?
Without going into too much detail, the price of TRX is being inflated due to burning mechanisms and its algorithmic stablecoin USDD. Does it deserve its current valuation? Is Justin Sun truly a genius who has engineered the perfect, stable asset? My bet is that this is not the case.
I'm scaling into a short again - entries are marked at the green levels on the lefthand chart, which shows short-term price action. Short term targets are in red, while longer term short targets are shown on the righthand chart (3 day). It might take some time for this to break down, during which TRX can again get into the mid-7 cents zone. This is especially the case if markets are to rally for another 2-3 months. This is why my stop is fairly tight here, and I'm just trying to catch a wave down.
Let's see! Invalidation will be if TRX can break and hold above that triangle resistance on the 3 day chart.
This is not meant as financial advice. This is meant for speculation and entertainment only.
-Victor Cobra
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Entries $0.06881 $0.06929 Pending: $0.06990
Stop loss: Above short term descending resistance, mid-$0.070 zone
Trade closed manually
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Closed out at break even. Third order cancelled. Markets look bouncy today, so alts like TRX could follow. Too much risk. Will re-assess.
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Showing some continued daily MA resistance and crypto’s movement relative to stocks has been quite lackluster. Opened again near 0.0687. Let’s see if it gives an opportunity to close lower.
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Nasty PA ;)
Trade closed: stop reached
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Stopped myself here at 0.071. Crypto may continue to recover a bit for the next couple of months, and TRX still shows no signs of truly breaking any support. This idea is still valid in the medium-term, just not so sure about the near term.
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Now that I’ve closed my short, it can crash ;)
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Regardless, won’t be posting or entering any trades until next week - have an important exam coming up for my social work license so don’t need the added distraction.
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If I weren't already in a short on ETH, I would probably be re-shorting here now that I've passed my exam and don't have to spend all my free time studying :)