In a surprise change of sentiment, Tron (-2.82%) and Polkadot (-2.93%) are on their back foot over the past 24-hours. These two coins have exhibited extraordinary strength this year, but are now running contrary to the leading cryptos. Bitcoin BTC (+0.26%), Ethereum ETH (+1.18%), and Ripple XRP (+0.61%) are all in the green ― what’s the problem with TRX and DOT?
At this point, it appears as though TRX and DOT are in the midst of a standard pullback. There aren’t any big news items that suggest these coins should run against the rest of the crypto asset class. However, like the price of BTC and Coinbase stock, there is certainly a positive correlation between Tron and Polkadot. It will be interesting to see if they continue to move in tandem as the crypto-boom of 2021 progresses.
One of the key market fundamentals facing TRX is the explosive growth of users. Yesterday, Tron issued its weekly report for 4/12 to 4/19. In it, there were a few key metrics that suggest Tron is going mainstream:
- Tron added 981,899 new addresses for the week. Total accounts now stand at 28,845,198.
- The total number of transactions reached 1.77 billion, with 18.23 million new transactions in the past week.
- The average daily trading volume on the Tron Dapp DAU reached $159 million.
So, what does all this mean? First and foremost, it suggests that Tron is quickly gaining mainstream adoption. Given these strong metrics, could it rival Polkadot as the premier alt-coin of the future? With cryptos, anything is possible.
Polkadot (DOT) Pulls Back From Monthly Highs
Overview: As you can see from the chart above, the past 24-hours have been a challenge for Polkadot (DOT). However, a long-term bullish bias remains warranted. If you’re trading the DOT/USD, keep a close eye on the macro 38% retracement of $30.90. This is a key support level; as long as the DOT/USD is above this handle, a bullish bias is warranted. If price slips beneath it, a swift test of the macro 50% retracement ($25.50) is highly likely.
Tron (TRX) Tests Macro 38% Retracement
Overview: For Tron, a bullish bias continues to be warranted. However, the TRX/USD has put in a hard test of the macro 38% retracement ($0.12). Like Polkadot, this is an important technical level; if it’s taken out, then a swift retracement is likely. All in all, these two altcoins are trading within extremely pivotal technical areas.