TRON dumped as Justin Sun is accused of promoting a Ponzi scheme

TRON (TRX) is one of the worst-performing altcoins out of top-20. The coin with the current market value of $922 million has lost over 10 in recent 24 hours and extended the decline during early Asian hours on Tuesday. Notably, the coin hit $0.0160 on Monday before reversing sharply towards $0.0135 at the time of writing.

Ponzi game

As we reported earlier, the founder of TRON Justin Sun promoted a new game that had been launched on December 22 on TRX blockchain. According to Sun, the game is controlled totally by blockchain without human interference. 

However, many participants noted that the game had the feature of a Ponzi scheme. It is all about buying "boxes." The more people buy, the higher the rewards. Sun himself tried to buy a box during online streaming but failed to complete the purchase.

As the previous growth might have been caused by the pump, created by the game, the disappointment and the allegations that the head of Tron Foundation has been shilling a scam project reversed the luck for TRX. The coin has been under intense selling pressure since the second half of Monday. 

TRX/USD: technical picture

TRX/USD moved below the support area of $0.0140 ( the middle line of 4the daily Bollinger Band. As a result, the price continued the decline towards  $0.0135 (SMA50 4-hour). If it gives way, psychological $0.0130 will come into focus. The next support is created by the lower line of the 4-hour Bollinger Band and the recent bottom at $0.0121.

On the upside, we will need to see a sustainable move above $0.0140 to mitigate the initial pressure and allow for an extended recovery towards $0.0145 (SMA200 4-hour) and psychological $0.0150. Once it is out of the way, the upside is likely to gain traction with the next focus on the recent high of $0.0160.

Considering the downward-looking RSI (the Relative Strength Index), the bearish scenario looks more likely at this stage.

TRX/USD 4-hour chart