The crypto market has stabilized after two days of massive sell-offs. This comes as the US Fed made a serious commitment to deal with inflation with aggressive monetary policy. Tron (TRX) has been one of the best-performing coins in this recovery, with a 25% upswing over the last week. But is this real momentum or just another dead cat bounce? Here is what you need to know:
TRX showed incredible resilience even as the market crashes
The coin is now above a crucial $0.05 support and could stay there for days
With momentum picking up in the market, TRX could hit $0.09.
Well, there are many factors at play in crypto right now. The Fed’s aggressive move to deal with inflation is a good sign. But there are still many underlying economic factors that could make any rally short-lived.
For instance, there is a real prospect that a major recession in the US could come later this year. So, for TRX, the uptrend will have to deal with these possible risks. If momentum in crypto slows, then it will be hard for TRX to maintain growth.
We don’t think there is enough confidence in the market for a sustained bull run in crypto right now. As such, TRX will see a dead cat bounce rally over the coming week before it retreats again. But if it can stay above the $0.05, the possibility of a major downside is limited.
The best way to invest in a risk-averse market is to pick a short-term position. TRX offers a good play in this.
First, if the coin stays above $0.05, it could provide a decent entry point for bulls. A short-term rally will likely push TRX toward $0.09. This will be the ideal time to exit and cash out.