The Tron (TRX) price is already up by more than 40 percent in June. And there is a possibility that it could rise even further.
The latest bullish call comes in the wake of the Tron Foundation’s decision to buy back $20 million worth of TRX tokens. The plan, as of now, stands unconfirmed but is undoubtedly raising the upside bias in the Tron market.
As analysts believe, the foundation would likely wipe off $20 billion worth of Tron tokens from the market, thereby decreasing its supply. A buyback program of similar nature has historically led to the price rallies in the cryptocurrency market. Binance’s BNB token, for instance, rises exponentially upon each of its token burn events.
Nevertheless, whether or not Tron would put the tokens out of circulation is unclear at the time of this writing.
“They’re going to buy back coins on secondary markets. This should leave less supply on the open market. It’s not a coin burn but it’s something,”stated one of the Tron community members on Twitter.
Tron (TRX) Price Analysis
The TRX price is currently trending inside a Rising Wedge pattern. Traditionally, the price expects to move upward until it reaches the apex of the wedge pattern. Therefore, one can still expect the TRX price to hit $0.044 in the near-term.
However, upon reaching the apex, the Tron price would likely correct downwards. The drop, in such a case, would be equal to the height of the Rising Wedge. As of now, it is around $0.010. That makes 0.034 as the primary upside target of the current pattern.
In case the wedge invalidates, the TRX price’s next upside target would be $0.0467, the resistance level of June 18, 2018.
Check out the latest TRX price updates on CoinStats’s cryptocurrency portfolio management app.