The rally in Tron (TRX) appears to have ended, TRXBTC has now come back inside a key resistance zone after spending a week or so above it. The level in TRXBTC is 757 Satoshis (Figure 1).
Big pumps followed by big dumps is a frequent occurrence in crypto, particularly in alts. In this particular case, Tron (TRX) represents a new level of hope and hype for the dApp space. If that hope fades and Bitcoin (BTC) is unable to rally off good macro news, a rollover in Tron (TRX) could lead to an overall market decline.
The chart of Ripple (XRP) is also cause for concern. The recent Ripple (XRP) rally has failed at a Fib speed resistance line that stopped the rally early January (Figure 2). With reports suggesting Ripple’s (XRP) total market cap may be $6 billion more than it should, this chart picture could put Ripple (XRP) at risk for a fall.
If Ripple (XRP) and Tron (TRX) start declining sharply, that could have implications for the crypto market as a whole. Total crypto marketcap is approaching a Fib circle level (Figure 3). What happens at this inflection could offer a hint as to whether a bottom is finally in, or the crypto market is headed for a repeat of November.
Bottom Line: For HODLers of crypto or Bitcoin (BTC), the hope is that Tron (TRX) and Ripple (XRP) do not fall apart. If these two coins do start a sharp decline, the whole crypto market could follow. At this point it looks like a Bitcoin (BTC) rally is the only thing that can hold crypto up.