Tron (TRX/USD) Closing In On The $0.10 Handle

Last week was a big one for cryptos as the asset class posted solid gains. Now, Bitcoin BTC stands north of $45,000, Ethereum ETH is above $3,000, and Tron TRX is challenging the $0.10 handle. With Q3 rapidly passing, one has to wonder if the mini-crypto winter of summer 2021 is drawing to a close.

Once again, Capitol Hill is getting involved in the cryptosphere. Earlier today, stories hit newswires that U.S. Representatives Tom Emmer (R-Minnesota) and Darren Soto (D-Florida) have introduced new legislation designed to narrow the definition of “money transmitter.” Known as the “Blockchain Regulatory Certainty Act,” the bill has been proposed to remedy concerning regulatory guidance. According to Emmer:

“Blockchain service providers need clear rules to be able to develop and invest in the United States. This clarity is more necessary than ever as the FATF [Financial Action Task Force] tries to encapsulate more non-custodial blockchain developers in the money transmission system.” 

So, it looks like there are factions in the U.S. Congress interested in working for clarity in the blockchain. For now, it looks like crypto traders are enthusiastic about the potential of these efforts. 

One of the biggest performers from the past week has been Tron. The altcoin is up more than 25% and challenging its intermediate-term downtrend.

Tron Tests Key Fibonacci Resistance Level

Technically, a bearish bias remains warranted for Tron. However, if the Macro 38% Retracement ($0.0974) is taken out, we may see a swift rally in the TRX/USD.

Bottom Line: If we see a hard test of the $0.0974 level, I’ll be looking to sell at market. With an initial stop loss at $0.1200, this trade yields $0.02 (20.5%) on a 3:2 risk vs reward ratio.