Tron (TRX) has been on bullish trajectory for the past one week. From its lowest point in December, Tron is up by over 100%. Even in today’s market crash, Tron (TRX) looks unfazed, and is still in the green. This makes it quite tempting for investors to FOMO in. However, it also comes across as a nice short, since after such a massive rise in price, a correction is bound to happen at some point. Therefore, the big question now is, does Tron (TRX) make for the perfect short, or is there a possibility of it continuing on its current trajectory? Let’s go through a few reasons why Tron (TRX) could be a good short, and a few others why it makes for a good buy.
Why to short Tron (TRX)
After a whole year in the red, the crypto market is becoming quite predictable. Every time a crypto pumps while the rest of the market is bearish, it is usually an artificial pump, and is more often than not followed by a dump. There are many examples to support it. At some point last year, Metaverse (ETP) was on a consistent Bull Run, even as the rest of the market dropped. Ethereum (ETH) too was pumping for the last few weeks of 2018, but it’s now dumping again, faster than most top 10 cryptos. It has even slipped back to 3rd position. Many other examples abound. As such, Tron (TRX)’s solo bull rally could also be a pump that will be followed by a huge dump later along. As such, in the short term, a well-timed short on Tron (TRX) would most likely give good returns.
On top of that, in making successful trades, the trick is always to buy low and sell high. In the case of Tron (TRX), that opportunity may have passed in the short-term. Anyone who bought Tron at $0.01 is already swimming in money. They got in at a major support level, which was also the point of lowest risk. That’s not the case for someone getting in now. Anyone getting into the market now is taking a higher amount of risk. That’s because, after a more than 100% increase in price, those who got in early could start taking profits. The result is that a correction would hurt late comers.
Why to hold on to Tron (TRX)
While shorting Tron could have potentially high returns, it doesn’t mean that HODLing is a bad idea. That’s because in the grand scheme of things, Tron (TRX) is heavily undervalued, when compared to its all-time highs. The idea that Tron is undervalued is supported by the fact that it has made tremendous progress this year in terms of technical development, and it terms of adoption. The purchase and integration of Bittorent alone makes Tron (TRX) extremely undervalued when trading at under $0.10. In essence, long term, Tron (TRX) makes for a good hold.
In essence, Tron (TRX) makes for a good short in the short-term, but a good hold in the long-term.