One of the best ways to make money in any financial markets is by understanding market cycles. That’s because while fundamentals do play a role in driving up asset prices, it is investor psychology that plays the biggest role in determining market movements. Just to give you context on this, look at the crypto market in 2017. Most cryptos were mere whitepapers, yet they gained in value by thousands of percentages. They didn’t make these gains based on their fundamentals, they gained because there was a mass euphoria that was driven by the expectation of higher gains.
This euphoria was pretty much in line with the psychology of market cycles, and had been building up since 2014. This year has been quite different as the market has gone south. Given that the crypto market tends to follow these cycles quite well, where exactly is Tron (TRX) in this cycle, today?
Looking at the stages of the psychology of market cycles, Tron (TRX) is at stage 12, also called the anger phase. This stage is characterized by a general sense of anger towards an asset. At this point, investors show their anger by looking for someone to point fingers at for the price collapse of an asset. Tron seems to be eliciting these kinds of reactions lately. All you have to do is look at the comments in most of Justin Sun’s tweets in the last two months or so. He is constantly hit with all kinds of anger driven comments.
Most of them revolve around the idea that through the super-representative reward system, he has made the coin inflationary, which will make the coin worthless in the long-run. He is also constantly accused of doing nothing but hype the project, instead of focusing on building partnerships. This is quite a huge contrast to earlier in the year, when each of his tweets were taken with lots of enthusiasm, as people used them as a signal to jump into Tron (TRX). Now they are a source of anger and ridicule for the better part.
Interestingly, this is actually the best time to buy into Tron (TRX). In Wall Street, this phase is considered the point of opportunity. It’s the point at which, an asset or the market in general, is hitting the bottom. Soon, Tron (TRX) will hit the depression phase where most people will give up and exit it all together. After that, selling volumes will thin out and prices will begin to rise slowly because most people will be in disbelief that Tron (TRX) can ever rise again.
There is just so much happening with this crypto that support it from going to zero. Bit-torrent alone, being one of the largest P2P platforms in the world is enough to support its price in the long-run. You just need to think like a Wall Street financial wizard and you could make a fortune with Tron (TRX) in the future.