TRON Price Analysis: TRX Price Offer $0.75 Breakout, But Will It Sustain?
On May 4th, the TRON(TRX) price spiked as we neared the launch of the USDD stablecoin. The sudden price jump rechallenged the resistance trendline of the flag pattern, provoking a bullish breakout. However, the sellers aggressively defend this level, resulting in a long- wick rejection.
Key points
- A Daily-candle closing above $0.78 is needed to confirm the breakout opportunity
- The 24-hour trading volume in the TRON coin is $2.39 Billion, indicating an 45% gain
Source-Tradingview
Responding to an inverted flag pattern, the TRON(TRX) price has been consolidated in a range-bound rally with an insignificant upward movement. The multiple retests to the extreme boundaries of the ascending channel indicate the credibility of this pattern.
On May 1st, the TRX price rebounded from the $0.0619 support with a massive bullish engulfing candle. The new cycle surged the altcoin by 22% higher to the overhead resistance trendline.
Furthermore, with the upcoming launch USDD stable coin, the TRX price experienced a sudden pump today, testing a bullish breakout from the ascending channel. However, the long-wick rejection attached to daily-candle suggests sellers have not thrown in the towel yet.
If the TRX buyers surpass the shared resistance of 200 DMA and resistance trendline with closing above the $0.078 mark, the accelerated bullish momentum will surge the coin price above $0.082 resistance.
Conversely, a candle closing below the $0.075 mark would keep the inverted flag pattern intact and may revert the TRX price back to the bottom support trendline.
Technical indicator
A bullish crossover of the 20 and 50 DMA encourages buyers to breach the overhead resistance trendline. However, the 200 DMA aligned with this trendline assists sellers in mounting a strong defense.
The coin price pierced the upper band of Bollinger band indicators suggesting strong bullish momentum and over-extended buying. The high wick rejection at indicator upper bolsters the reversal possible.
- Resistance level- $0.082 and $0.093
- Support levels- $0.075 and $0.071
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