- Sun clarifies investment strategy focuses on staking, not leveraged trading, holding 377,590 ETH across multiple wallets.
- Despite Sun’s initiative, TRX price sees minor increase of 0.56%, continues bearish trend with strong market skepticism.
In response to a significant sell-off in the cryptocurrency market, which resulted in a $300 billion decrease in market capitalization, Justin Sun, the founder of Tron Network (TRX), has pledged $1 billion to stabilize the sector.
This announcement was made as global stock markets also experienced declines, adding to the financial turmoil.
Sun disclosed his plan on X, where he stated:
“The industry has expanded over the past year, and this market fluctuation is not linked to negative news. We should dismiss fear, uncertainty, and doubt (FUD) and continue to build. That is why we are setting up a $1 billion fund to fight FUD, invest further, and boost liquidity.”ย
His statement aims to reassure traders and investors during a time when the market has seen liquidations.
Don't worry! The industry has grown significantly over the past year, and this market fluctuation isn't due to negative news. We should reject FUD and keep building. That's why we're creating a $1 billion fund to combat FUD, invest more, and provide liquidity. ๐
— H.E. Justin Sun ๅญๅฎๆจ (@justinsuntron) August 5, 2024
The recent market downturn saw Ethereum (ETH) endure the largest liquidations, with over $355 million liquidated in 24 hours. Amid these losses, there were rumors that Sun had to liquidate substantial positions.ย
Sun addressed these rumors by clarifying that his investment approach does not typically involve leveraged trading. Instead, he focuses on staking and supporting various crypto projects. He confirmed holding 377,590 ETH in several wallets, emphasizing his ongoing engagement in the cryptocurrency space.
Despite Sun’s reassurances and the introduction of the relief fund, TRX has continued to show a downward trend. After the announcement, TRX experienced a slight increase of 0.56%, trading at $0.124.
However, broader market analysis using the Directional Movement Index (DMI) indicates a continuing bearish outlook, with the negative index notably higher than the positive.
Moreover, recent trading data shows significant liquidations of TRX long positions, with $631.69k liquidated on July 5th, indicating ongoing market skepticism about the altcoin’s future.
While Sun’s $1 billion initiative is a substantial commitment to the crypto industry, it has yet to make a decisive impact on reversing TRX’s market fortunes.
The current price of TRX (TRON) is $0.122735, which represents an increase of 3.93% over the past 24 hours. TRON has a circulating supply of 87.01 billion and a market capitalization of 10.679 billion. The price range for the day is between $0.121538 and $0.123312.
Price Prediction
Based on technical analysis and current market trends, the price of TRX is projected to reach around $0.130 in the near term.
