- Justin Sun announces $1 billion for crypto industry amidst market crash
- TRX, however, remains bearish despite positive developments.
In the last 48 hours, crypto markets have experienced an extreme sell-off amid a global market stock crash. The crypto industry experienced over $1 billion in liquidation, resulting in over $300 billion decline in the crypto market.
Amid the market uncertainty, Justin Sun, the founder of Tron Network (TRX), has come out as a savior, announcing $1 billion as a relief plan for crypto.
Justin Sun announces relief plan amid market crash
While the market was crashing, traders and analysts were scrambling for a lifeline. Through this turmoil, Justin Sun announced his $1 billion initiative for the crypto market. Through his official X page (formerly Twitter), he announced,
“Don’t worry! The industry has grown significantly over the past year, and this market fluctuation isn’t due to negative news. We should reject FUD and keep building. That’s why we’re creating a $1 billion fund to combat FUD, invest more, and provide liquidity.”
His investment is an assurity to crypto traders and investors as the market has experienced high liquidation over the past two days.
Crypto market downturn and ETH liquidation
With the crypto downturn amid the global stock market decline, ETH suffered the most. In the middle of the decline, ETH suffered increased liquidation, with more than $355 million liquidated in 24 hours.
This increased liquidation brought rumors that many investors, including Justin Sun, were victims. Various reports claimed that he was forced to liquidate his positions as ETH was crashing and most long positions liquidated.
However, while announcing his crypto relief plan, Sun stated that such rumors were false. He went ahead to explain in detail arguing that he rarely engages in leveraged trading but mostly does staking and supporting various crypto projects.
Such a strategy has seen his ETH holdings accumulate over time to 377,590 ETH, which is spread across various wallets.
Potential impacts on TRX price charts?
Since Justin Sun is the founder of TRX, his remarks and investments are likely to impact its price action. While TRX has experienced a sustained downtrend, the $1 billion relief plan has boosted the altcoin on daily charts.
The crypto has gained 0.56% on daily charts to trade at $0.124.
Source: Tradingview
AMBCrypto analysis showed TRX has experienced a strong bearish market. As indicated by the Directional Movement Index, the downward momentum is sustained.
The DMI showed that the negative index at 25.3 sits above the positive index at 14.6. This suggested that the downward movement is strong.
Source: Coinglass
Looking further, the TRX OI-weighted funding rate has been negative over the last four days, according to Coinglass.
This meant that short positions are paying long positions, which usually occurs when perpetual futures prices are lower than the spot price. This suggests a bearish market sentiment.
Source: Coinglass
Equally, even after Justin announced the $1b initiative, TRX has experienced massive liquidation for long positions over the last 24 hours.
According to coinglass, TRX liquidation for the long positions on 5th July hit $631.69k. Thus suggesting long position holders were forced out of their positions as they lacked conviction with the altcoin’s current direction.
Therefore, although Justin Sun announced a $1 billion relief initiative to support the crypto market, the TRX market remains bearish even on daily charts.