Tron future market price prediction based on its liquidity

in #trading5 years ago

Tron is a cryptocurrency which was issued and created on Ethereum network in 2017 but was later transferred to the Tron mainnet in 2018.As a cryptocurrency operating on Tron network, Tron coin can be transferred from one peer to another without involvement of centralized third part. Upon transaction being verified by Nodes running and operating the Tron network, the receiver will receive their Tron coin while the Nodes will benefit from the fees paid by the sender. The users who delegated their coins to several Nodes to use them to secure the network will be also be rewarded.Because of this,Tron coin is being considered to be a decentralized cryptocurrency.Tron coin was created by Justin Sun who is a Chinese based self taught technologist with the main objective of making it a decentralized internet to help content creators to monetized from the data they create online.As a cryptocurrency, Tron coin can be used by different developers on Tron network to pay for hosting their Dapps over there as well as to create and issue the TRC20 token of their Dapp.One Tron user sending the Tron coin to another user can also use the coin to pay for fees so that the Nodes can accept the transaction on the Tron network thus making the receiver to receive the amount sent instantly. Tron coin is being abbreviated as TRX. In November 2017 when Tron conducted its first ICO, one Tron coin was going for $0.00186.Towards the end of 2017,Tron coin price managed to go as high as $0.0465.Towards the beginning of 2018 ,the price of one Tron coin rises further to $0.08. 4 days later the price managed to go the highest at a price of $0.23. Towards the end of 2019, the price again went down to $0.0196. When 2019 was starting, the price started trading at $0.0186. The price of Tron coin has managed to maintained that range such that it is currently trading at between $0.019 to $0.02. Its future price will be determined by several factors such as Dapps built on its network, its liquidity and consensus used. The liquidity of Tron in several exchanges will affect its future price as follows;

Tron Liquidity

As a liquidity, coin can be considered to be widely spread to several users thus making its price very stable. Its most liquidity widely spread is its listing in several exchanges.An increase in the number of exchanges to list Tron coin results to an increase in the price of Tron while a decrease in the number of exchanges to list Tron coin will result to a decrease in its price.Tron coin is therefore less volatile and stable due to its listing in several exchanges as follows;

https://www.binance.com/en

https://global.bittrex.com/

https://www.kucoin.com/

https://www.gate.io/

https://www.bitfinex.com/

https://mercatox.com/

https://exmo.com/

https://atomars.com/

https://www.okex.com/

https://www.digifinex.com/

https://hitbtc.com/

https://www.hbg.com/en-us/

https://bitmax.io

Since Tron coin is being listed in several exchanges including some above, it is therefore considered to be more liquidity thus its price is very much stable as compared to other cryptocurrencies. Its future price based in bullish and bearish condition can further be explained as follows;

1.Tron bullish market based on its liquidity

Tron coin price is very much stable compared to other cryptocurrencies. This stability in price is due to its listing in several exchanges. Its current market price is $0.0195. In the near future, if more exchanges will continue to list the coin, then it will become inefficient in the Tron network thus causing its price to increase much further.Developers of Tron network will have an easy time to transfer their Tron coin earnings to several exchanges where they will be able to convert them to other cryptocurrencies like bitcoin and Ethereum.The future market price for Tron coin based on an increase in its listing in several exchanges is further illustrated as from below

tron bullish.png

From the future price analysis of Tron coin from above, there are two points, A and B. As you can see from the candlesticks analysis graph, the Tron market has been trending upwards and managed to go as high as $0.022. This increase in price is due to an increase in its listing in several exchanges.Developers of several Dapps built on Tron network as well as users of those Dapps over there then transfer their Tron coin earnings to several exchanges where they convert them to other cryptocurrencies like bitcoin and Ethereum.This results to a decrease in price of the Tron coin to point A at a price of $0.0196. More exchanges that have entered the cryptocurrency industry then list the Tron coin in their exchange thus causing it to become inefficient again thus causing its price to rise again to point B.In near future, if more exchanges will enter the industry and continue listing the Tron coin to their exchange, then its price will continue to increase much further to above point B thus in one year time, the price might go as high as $0.03. As an investor ,this is the right time to buy Tron coin because more exchanges are entering the industry.  

2.Tron bearish Market based on its liquidity

Tron coin price is very much stable compared to other cryptocurrencies. This stability in price is due to its listing in several exchanges. Its current market price is $0.0195. In the near future, if more exchanges will start delisitng the coin due to several factors such as not adding value to its community members or due to several Dapps exiting the network and looking for other network with favorable condition, then it will become surplus in the Tron network thus increasing its volatility thus causing its price to decline much further.Developers of Tron network will have a difficult time to transfer their Tron coin earnings to several exchanges where they can be able to convert them to other cryptocurrencies like bitcoin and Ethereum.The future market price for Tron coin based on a decrease in its listing in several exchanges is further illustrated as from below

tron bearish.png

From the future price analysis of Tron coin from above, there are two points, A and B. As you can see from the candlesticks analysis graph, the Tron market has been trending downwards and managed to go as low as $0.0196. This decrease in price is due to a decrease in its listing in several exchanges.Developers of several Dapps built on Tron network as well as users of those Dapps over there then purchase the Tron coin in few exchanges available so that they can use them to perform some small task like paying for gas fees as well as transferring the tokens of the Dapps built over there to another smart contract address .This results to an increase in price of the Tron coin to point A at a price of $0.022. More exchanges that have entered the cryptocurrency industry and had initially listed Tron coin then start to delist the Tron coin from their exchange thus causing it to become much more surplus again in its network thus causing its price to fall again to point B.In near future, if more exchanges already in the cryptocurrency industry will continue delisting the Tron coin from their exchange, then its price will continue to decrease much further to below point B thus in one year time, the price might go as low as $0.015. As an investor ,this is the right time to sell Tron coin if you think it is going to be delisted by several exchanges due to its poor performance.

Summary

Tron coin has a bright future for its community members. There are many cryptocurrency companies entering into the cryptocurrecny exchange everyday. As they get into the industry, many are increasing the liquidity of Tron coin. In near future, Tron coin's liquidity will be high thus causing the coin to become inefficiency.This will make it to increase in price further. Therefore we can say that an increase in Tron liquidity overtime will result to an increase in its price while a decrease in Tron's liquidity over time will result to a decline in its price

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