Does Tron’s latest plan safeguard the market or is TRX at the center of it all

Speculation around Tron suggested that the decision may be aimed at reigniting demand for TRX since it has been on a bearish trajectory. According to the official announcement, the move aimed at creating a safety net for the cryptocurrency industry.

The announcement did not disclose how exactly this was going to safeguard the crypto market. It seemed unlikely to be the reason for the purchase considering that TRX operates across over 10 exchanges. At first glance, the idea that it might have been to reignite bullish demand also seemed unlikely. This was because the amount purchased represented just 0.002% of TRX’s market cap.

TRX experienced a sharp crash in the last eight days, with the price dropping to a new 2022 low on 14 November. The last time it traded at that price range was in March 2021.Could it be a mere coincidence that the Tron DAO reserve just decided to buy back TRX when it was deeply oversold? There was no denying that the announcement may have curtailed the downside. Nevertheless, the weighted sentiment metric indicated that investor sentiment improved in favor of the bulls in the last three days.Furthermore, the shift in weighted sentiment meant that investors were already buying in anticipation of a pivot. The volume increase in the last two also suggested that incoming buying pressure had been building up and the Tron DAO Reserve announcement was made at the opportune time.

It may have contributed to a stronger sentiment shift since investors are likely to be more confidence if Tron itself is buying TRX from the market. Tron’s market cap bounced by as much as $360 million as of 14 November.The sentiment shift and the strong market cap increase indicated a strong demand near the recent bottom. It will also be interesting to see if TRX can manifest enough bullish demand to recover from the oversold zone.in the event that it fails to secure enough bullish demand.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Lido’s latest market move could have ETH stand here despite market conditionsLido [LDO] witnesses a massive uptick in APR Validators on Ethereum also showed interest along with large addresses On 13 November, the Lido proposal led to the surge of the allowable APR from 10% to 17.5%. The proposal at hand also led to Lido stETH APR touching 10.2%. Yesterday, the Lido 143 proposal increased the […]
Source: CryptoAmb - 🏆 22. / 68 Read more »