Tron price analysis: TRX/USD garners support above $0.040; Justin Sun announces burning of 1 billion TRX coins to celebrate Independence Day

Tron network commenced its token migration yesterday. The token switch is supported by various exchanges including the largest exchange, Binance. The users are expected to send Ethereum-based TRX tokens to the exchanges, which will be transferred to Tron mainnet. The holders will then receive an equal amount of tokens at the completion of the migration process.

The Tron community is also anticipating a big event on June 25. The network will hold its first elections on this day. The day will mark the independence of Tron in the industry. The founder of Tron, Justin Sun announced on twitter that the Foundation will be celebrating the day by burning 1 billion coins. A section of the official announcement on Medium reads:

 “To commemorate this exciting moment, TRON Foundation will conduct a burn of 1,000,000,000 TRX all at once, which is worth 50 million USD according to today’s market price.” In continuation, it says, “This may set the record for the most amount of money destroyed in human history in celebration of a historic moment. The amount of TRX at the beginning of mainnet launch will be reduced to 99,000,000,000TRX, and the remaining 33,251,807,524 TRX held by TRON foundation will stay locked until January 1th, 2020.”

Tron price analysis

Tron price is holding tight to the lower trendline of Andrew’s Pitchfork while the Bulls are battling to reverse the trend above $0.040. The digital assets are bleeding on Friday, and word is that the prices are reacting to the Financial Services Agency in Japan having sent improvement orders to at least six cryptocurrency exchanges. The biggest exchange in the country, Bitflyer Inc. is also among the exchanges in the spotlight.

Technical indicators on the chart show that the bears have the control. The stochastic is deep into the oversold territory while the price is trading below the moving averages. If the price breaks below the supporting trendline of Andrew’s Pitchfork, TRX/USD could break down below the key support at $0.040. Tron price is risking declines to test the previous lows at $0.023 traded in April this year. If the buyers can force a reverse above the immediate supply zone at $0.050, TRX/USD could gather momentum to approach the key supply zone at $0.060.