TRX - The Outlier, Part 2
Mis à jour
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
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
Transaction en cours
Entries $0.06881
$0.06929
Pending: $0.06990
Stop loss: Above short term descending resistance, mid-$0.070 zone
Trade fermée manuellement
Closed out at break even. Third order cancelled. Markets look bouncy today, so alts like TRX could follow. Too much risk. Will re-assess.Transaction en cours
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.Note
Nasty PA ;)Trade fermée: ordre d’arrêt atteint
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.Note
Now that I’ve closed my short, it can crash ;)Note
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.Note
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 :)Note
This thing is still going. Incredible. Justin Sun just transferred a bunch to Binance. Perhaps a return to the 5 cents level is in order. 
Publications connexes
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.