TRON Faces 12% Weekly Decline Amidst Concerns Over Huobi’s Solvency

TRON is experiencing a 12% weekly decline in its price, prompting its founder, Justin Sun, to address concerns around Huobi exchange’s solvency. Speculation concerning Huobi’s financial health has raised doubts concerning its capacity to fulfil USDT obligations. Alarmingly, crypto analyst Adam Cochran suggests that Huobi may be heading towards insolvency, as its liquid assets reportedly cover less than a third of its obligations.

Furthermore, unconfirmed reports of Chinese authorities taking executives from both Huobi and TRON have added to the uncertainty and unease in the market.

Cochran shares Huobi’s total balance as of August 6, totaling $2.5 billion, with $662 million in TRON, $500,000,000 in Huobi Token, $884,000,000 in Bitcoin (meant to cover $3,000,000,000 in BTC issued on TRON), and $168, 000,000 in HBTC. This leaves just $286,000,000in other assets, significantly less than the reported USDT obligations.

1/3

Huobi’s current total balance is $2.5B

of which $662M is Tron,
$500M is HT,
$884M is BTC (which is supposed to also cover the $3B in BTC issued on Tron)
$168M is HBTC

This leaves $286M in other assets. pic.twitter.com/UeuOEKCxQH

— Adam Cochran (adamscochran.eth) (@adamscochran) August 6, 2023

The TRON and broader crypto communities closely monitor further developments and actions taken by Huobi and TRON to address concerns and restore market confidence. Justin Sun’s call for resilience and focus amidst the FUD serves as a reminder for the community to remain vigilant and make informed decisions in times of uncertainty. Key levels to watch on TRXUSD

Key TRX Levels To Watch – August 8

Tron has encountered a substantial downward movement in recent days, with its price plummeting by over 12% since reaching its daily high on July 29th. The Stochastic indicator signals a bearish market sentiment. Furthermore, the previously bullish channel has been unable to maintain its upward trajectory.

Market analysis suggests a potential pullback to the region of inefficiency, which was formed during the rapid decline in price, in order to resume the bearish trend. Traders and investors are closely observing the possibility of the bears targeting the support level at 0.0740, where a significant bullish order block is located. This level could potentially serve as a key area of ​​interest for market participants as they evaluate potential price movements.

TRX Key Levels

Demand Levels: 0.0750, 0.0700, 0.0650
Supply Levels:0.0800, 0.0850, 0.0900

Total Market Capitalization: 1.2T
Tron Market Capitalization: $6.8B
TRX Volume: $160M
Market Rank: 10

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