- Tron price plunges over 2% as several cryptocurrency-negative headlines hit the wires on Monday.
- TRX price breaks through important September support and prints a new low for the summer.
- More downside is expected with the critical point at $0.0513.
Tron (TRX) price slips for the second day in a row as negative headlines emerge on FTX and Do Kwon about Terra’s LUNA, this morning. It creates another wave of sell orders as faith in cryptocurrencies gets hammered again in an already eventful week with several key central banks set to make rate decisions. Expect to see more downside with a possible meltdown in Tron price action towards $0.0513 – a 14% decline.
TRX price could devalue by 14%
Tron price plunges over 2% in European trading as negative headlines hit the wires this morning, creating a bearish tone about cryptocurrencies as an asset class. The UK financial watchdog has issued warnings against crypto exchange FTX as it appears to offer products that are forbidden in the UK. The exchange is now under threat of having its access to mainland Britain denied. The second big headline creating waves this morning comes from Interpol, which has received notice from South Korean prosecutors for an international search warrant for Do Kwon, the co-founder of Terraform Labs, as it appears he is not responding to summons from the prosecutor’s office on the Terra meltdown in June.
TRX price investors are turning their back on cryptocurrencies as these headlines further tarnish the already battered trustworthiness of the asset class. The monthly S1 at $0.0587 could slow down the drop a little bit, although once below there, a vast area opens up that could see TRX price printing $0.054, just a few pips away from $0.053, which is the low of March 25, 2021, and bearing 14% losses.
TRX/USD Daily chart
Although limited, the bearish triangle could still hold a silver lining: price action could still flourish upwards towards $0.062. Although that is only 4% or 5%, it is still money on the table, and we could see bulls already trying to weaken bears a bit for a possible bullish breakout from the triangle. For example, if the Fed comes out rather dovish and limits its forecast for rate hikes, expect to see a quick breakout and price action run up towards $0.066.