Tronix (TRX) Loses Half Its Value in One Week - Coin Observer
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Tronix (TRX) Loses Half Its Value in One Week

Tronix is down nearly 50% in the last week of trading, after reaching an all-time high of just over 25 cents USD on January 5, 2018.

TRX is now in 13th place on CoinMarketCap. This type of volatility is common these days, as an influx of new investors chase after fast-moving cryptocoins.

Much of the fast rise in price is because of a listing on Binance. That exchange now boasts five million traders so when a new cryptocurrency arrives; it tends to get a lot of trading volume. TRX was no different, and the price shot through the roof, creating a new class of instant-millionaires – at least for a moment.

trx partnerships - Tronix (TRX) Loses Half Its Value in One Week

TRX Is Forging Corporate Alliances

The decline in price for TRX lately isn’t because of any bad news. Instead, it’s because investors are looking for even more significant signs that the project will meet growth objectives. That will require a strong team of developers and many outside partnerships. Justin Sun, the CEO of the Tron Foundation, has been teasing alliances on his Twitter account, which has been stoking interest. The recent announcement that Tronix and Baofeng would team up did not cause a feeding frenzy of buyers.

The partnership shows the company is working towards its goal of creating an entertainment system that awards viewers. Whether investors were looking for a different collaboration remains unknown. Sun is a protege of Jack Ma, and many are hoping that one of the significant partnerships he announces will be with Alibaba. However, it’s worth noting that every corporate deal builds value for a network. Corporations have large customer bases that will quickly adopt the technology.

Who’s Selling TRX?

Like moths to a flame, many traders don’t hang around long when a stock rises as high as TRX. They are looking for quick profits that they can lock in, so they exit their positions. That leaves the long-term holders and the reluctant investors who get involuntarily caught in a trade. They didn’t react quick enough to cut their losses and head for the hills, so they are down money and not happy. This group of bag holders is always the most vocal, especially when dealing with an adverse price movement.

Sun has been busy making announcements this week, including key hires of several experts. The project appears to be proceeding nicely, at a decent pace. Further, they are doing a good job of communicating with their current and potential investors.

Is Now the Time to Buy?

The main beef many seem to have with this cryptocurrency is the valuation. TRX has a humongous float of 100 billion coins. Even at a .10 valuation, the project already has one of the largest market caps around. It will take a series of smart moves and announcements to push the value higher. So far, it definitely looks the team is heading in the right direction. For patient HODLers, the past week has been a key buying opportunity.

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