Since the October 25 speech by the Chinese president, the country’s interest in blockchain technology and related projects has dramatically spiked. This has had positive spillover effects for several China-based cryptocurrencies — namely TRON (TRX), NEO (NEO) and Ontology (ONT), which have recorded increases between 20-70 percent.
The positive developments have continued today, as a local representative from the city of Guangzhou stated that they have received government funding worth $150 million — with the aim of advancing blockchain technology.
As a result of this increasingly positive attitude towards blockchain, Twitter account @TRONLady_ made a poll asking users about the coin price of Chinese public chains and which they believe deserves to be ranked in the top spot.
Since China expressed a positive attitude towards #blockchain, the coin price of Chinese public chains rise one after another. Which Chinese public chain below deserves the top spot and why? Vote and comment your opinion!https://t.co/LjPCbAVb99
— TRONLady (@TRONLady_) October 28, 2019
The overwhelming winner was TRON (TRX), getting 79 percent of the vote, followed by NEO with 16 percent. Let’s take a look at the price movement for both and decide which one has a better technical outlook.
The TRX price has been following a long-term descending support line that has been in place for roughly 18 months. Once it reached it on September, it initiated an upward move that is still ongoing. The movement began when the weekly RSI turned oversold for the first time and a bullish cross in the MACD followed shortly after.
The closest resistance area is found near 300 satoshis.
The NEO price had been trading inside a descending wedge since December 2018.
The price broke out in September 2019 and, after a period of accumulation, it initiated a very rapid upward move on October 25 — reaching a high of ₿0.001375.
It is worth mentioning that this upward move transpired after a very long period of significant bullish divergence in the RSI — affirming the legitimacy of the breakout.
Another interesting development is the fact that the NEO price failed to reach a close above the previous resistance area at ₿0.0012 — which coincides with the 200-day moving average.
A common movement afterward would be a retest to the breakdown levels — initiating a consolidation phase before the new bull market begins.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images courtesy of Twitter, TradingView.
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