In a new partnership with the Commonwealth of Dominica, Tron [TRX], the decentralized, open-source blockchain, was announced as the preferred blockchain of the Commonwealth of Dominica to develop and issue the Dominica Coin (DMC).
Since the announcement was made, TRX, the native coin of the Tron blockchain, recorded some traction. According to data from CoinMarketCap, the price per TRX rallied by 3.2% following the announcement.
Commenting on the new partnership, Dominica’s Prime Minister Roosevelt Skerrit opined,
“The open and cost-effective nature of the TRON blockchain infrastructure will play a vital role to better integrate Small Island Developing States like Dominica into the global economy in the future.”
But, did this partnership do any good?
TRX on a 4-hour chart
As of this writing, TRX exchanged hands at $0.06331. In addition to a 3% rally in the asset’s price in the last 24 hours, its trading volume was also up by 8.42% within the same period, data from CoinMarketCap showed.
On the four-hour chart, TRX buyers were on a rampage. At press time, the asset’s Relative Strength Index (RSI) rested above the 50-neutral zone at 57. In an uptrend, the Money Flow Index (MFI) was at 67, as it approached the overbought region.
Resting above the center line (red), the dynamic line of the asset’s Chaikin Money Flow (CMF) was pegged at 0.07 at press time. This indicated that investors took to the news of the network’s partnership in a positive manner.
Investors looking to ape in on TRX’s recent price rally should, however, note that the growth in price might be ephemeral. Once the buzz surrounding the partnership dies, the bears might commence a market takeover.
All has not been well with TRX
At its current price, TRX traded at its June 2021 level. According to data from CoinMarketCap, the asset was 78.89% shy of its all-time high, which it clinched five years ago on 5 January 2018.
Sharing a statistically significant correlation with the leading coin Bitcoin [BTC], TRX has also been impacted by the general turn that has plagued the cryptocurrency market since January.
On a year-to-date basis, the altcoin has declined by 16%. Likewise, its market capitalization fell from $7.73 billion to $5.85 billion since the beginning of the year.