Tron [TRX] Records Huge Gains on Acquisition, Set to Return Above $0.04?
There have long been rumors of Tron acquiring BitTorrent Inc, the world’s largest decentralized protocol, and today they were confirmed. BitTorrent is known for operating uTorrent where users upload shareable content. There has long been speculation of the acquisition, and at one stage, there was even a lawsuit potentially in the mix with Tron founder, Justin Sun taking legal action for BitTorrent not keeping discretion in early negotiations.
Typically in the stock market when one company acquires another company, the price of the acquired company moves up while the price of the company that has done the acquiring drops. This is typical because acquiring companies have to pay a premium to shareholders to agree to the acquisition.
In the case of Tron, the price has rocketed up on news of the acquisition with price back briefly trading back near prior resistance of $0.04. Typically, news in the crypto markets takes some time to be priced in so there could very well be another wave of buyers over the next 1-2 days, and we could see Tron’s price back above $0.04.
Price has retraced a bit since touching the $0.04 mark but this is to be expected as traders decide how to price in the news.
The 4hr chart gives a clearer picture of how price has reacted to this news. Prior to the news release, the price looked set to go lower but skyrocketed up when the news hit the headlines. Price met some resistance at the 200EMA which trading also around the significant level of $0.04. Just over a week ago, price action in Tron was trading above $0.04 and even near the $0.045 mark.
It would be interesting to see if another wave of buyers based on this news which could bring the price back up to these levels and even maintain them there. A valuation at these levels would be a good statement to the legitimacy of the Tron project and should bring more interest from investors. Tron currently has a market cap of $2.3 Billion.
On the hourly, the main thing to keep an eye out for is a golden cross occurring, a bullish signal where the 50EMA crosses the 200EMA to the upside. This could also spur another wave of buyers and provide enough momentum for the price action to soar back above $0.04.
- In the stock market, typically the acquiring company loses value on the news of an acquisition. Tron price has managed to soar on the news.
- News takes longer to get priced into the crypto markets than more traditional markets so we could see another wave of buyers arriving.
- $0.04 is a key level for Tron and maintaining above this price would be a strong bullish signal.
- Monitor hourly chart for a golden cross occurring.
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Tron [TRX] Records Huge Gains on Acquisition, Set to Return Above $0.04? was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.