Right after the collapse of the FTX exchange, Tron (TRX/USD) and its associated tokens were gaining. That was after FTX controversially announced that users could withdraw Tron ecosystem tokens. These include the native TRX, SUN, JST, BTT, and HT.
Reports indicated that investors could surrender as much as 80% of their funds to arbitrageurs to enjoy the service. After FTX confirmed it, the tokens went soaring. TRX went up from $0.052 to $0.062 before cooling off, although a better-than-feared inflation rate was also at play.
Nevertheless, the decision to allow TRX withdrawals has been under scrutiny. Many users believe this is a scheme to create huge arbitrage opportunities for market makers on FTX’s order books. It allows the arbitrageurs to acquire TRX tokens cheaply and sell them to FTX customers at exorbitant prices. That comes even as the quant trading company by FTX, Alameda Research, is known for arbitrage strategies.
As it stands, TRX gains are driven by speculations and a sentiment boost from the inflation data. It is, nonetheless, a different scenario if we turn to the technical side of TRX trading.
TRX breaches the asymmetrical triangle
Source – TradingView
On the technical outlook, TRX broke below the ascending trendline of the asymmetrical triangle formed on the daily chart. The break below confirms a bearish market for the token. The latest TRX gains took the price to the breakout zone. The level has been tested, and TRX is proceeding lower.
What next for TRX?
There is a clear bearish market for TRX after the breakout. However, what should give buyers hope is that TRX tested the yearly lows, which could be a bottom price for the cryptocurrency.
Still, we cannot be optimistic about a potential TRX price recovery at the moment. We need patience before the token finds a directional movement.