TRON's founder account on Weibo blocked, TRX/USD feels the pain

Chinese social media network Weibo, which is often called "Twitter for China," blocked the account of TRON's founder Justin Sun.

Dovey Wan, a founding partner of Primitive Ventures, wrote on Twitter: 

BREAKING and FINALLY ...  @justinsuntron  's Weibo (Chinese Twitter) account is now officially SHUT DOWN. totally not surprised given how loud he has been on Weibo even after the Buffet Lunch/kidney stone drama... 

Notably, Sun is known for his controversial marketing tactics that are often criticized both in China and around the globe. 

Sun stayed calm and encouraged TRX holders todo the same. He assured TRON users that he would resolve the issue with Weibo via a "direct communication channel."

TRON is super safu! Just follow me on @justinsuntron. We have a direct channel to Weibo and will get this resolved asap.  

TRON feels the pain

Meanwhile, TRON (TRX) has been losing ground following the news. The 14th largest coin with the current market value of $915 million, has lost over 2.6% on a day-to-day basis to trade at $0.0137 at the time of writing. TRX/USD is also down 6% on a weekly basis and over 31% on a month-to-month basis.

Looking technically,  TTRX/USD is moving within the downside channel. The initial support is created by $0.0133. This barrier is reinforced by the lower line of the daily Bollinger Band and the lowest level of December 12. Once it is broken, the sell-off may e extended towards $0.0131 (November 25 low) and $0.0123 (the lower line of the weekly Bollinger Band).

On the upside, the initial resistance awaits us on approach to $0.0148. This area limited the recovery at the beginning of December; also, it is reinforced by the middle line of the daily Bollinger Band. Once it is out of the way, the upside is likely to gain traction with the next focus on the confluence of SMA100 (Simple Moving Average) daily and the upper line of the Bollinger Band (currently at $0.0163). 

Considering the downward-looking RSI (Relative Strength Index), the bearish scenario looks more likely in the short run.

TRX/USD, the daily chart