Tron (TRX) mainnet launched but there was no price rally? Will it dip even more?

Long anticipated and hyped to exhaustion, Tron mainnet launched finally launched as planned and is currently in a testing phase until June 24th.

However, price didn’t move, it even went down a bit. Volume is dismal, breaking low records. How is that possible after such a big event for TRX?

Well, the rally is usually before the launch of mainnet, after the release price tanks for a while. Is that it? Pretty much, but let’s get into more detail.

“Sell the news” mantra is strong in crypto markets.

Because markets are typically driven by emotion, when a rumour with expected positive sentiment comes out it generally means the price is going to increase leading up to the actual news release. Probability shows that more often than not this pump spikes when news is released and then a subsequent correction occurs. It’s not a cryptomarket phenomenon, it’s a market phenomenon. For example, Apple’s share price increased leading up to the PC for it’s new Iphone. After the PC the stock dipped likely because traders were realizing profit at the top of that particular pump.

Mainnet happened, news is delivered, people dumped, whales dumped well before. The market is in a gradual decline and things are not looking up. The bear market is in full force, and any standard product test version launch won’t be enough power to turn things around for this particular digital currency (it’s currently trading flat). The crypto market doesn’t work like that, as much as we’d love it to.

However, a modest dip in prices allows for consolidation, and this dip is also in line with the predictions of many day-traders – so the prediction that this recent price decline will ultimately cause a rally upwards is plausible.

A leg lower could distress the TRX community and give rise to bears and we could see a bigger sell off as TRX holders are already somewhat disappointed as how things went with the mainnet deployment and price development.

Read: Best Multisignature Cryptocurrency Wallets for 2018

When will we see the price rally for Tron?

You need to wait for an overall market turnaround or some massive-scale partnership announcement (which is problably not going to happen).

Now TRX needs to prove itself after it finally breaks away from ERC20. Time will tell.. Building the community and vision first and then just copying the tech from another project might be a great way to scale – but there are a lot of question marks remaining, and also a lot of things more important than TPS that aren’t being talked about.

The mainnet launch is the foundation for improved infrastructure for DApps and attracting new developers to build applications on the blockchain, according to “A Letter to the Community” posted in a blog update.  It sets the path for third-party applications to run independent of the Ethereum chain. Clearly, it is way too early to use the price to gauge the success of the mainnet launch.

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Felix Küster
Felix Küster

Felix Kuester works as an analyst and content manager for Captainaltcoin and specializes in chart analysis and blockchain technology. He is also actively involved in the crypto community - both online as a central contact in the Facebook and Telegram channel of Captainaltcoin and offline as an interviewer he always maintains an ongoing interaction with startups, developers and visionaries. The physicist has couple of years of professional experience as project manager and technological consultant. Felix has for many years been enthusiastic not only about the technological dimension of crypto currencies, but also about the socio-economic vision behind them.

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