- Tron retraces from April highs but finds solace at $0.0250.
- Tron is sitting comfortably above the long-term ascending trendline.
- The TRX/USD weekly chart shows Tron having a cluster of support areas.
As predicted in the previous technical analysis, Tron reacted to the inverted head-and-shoulders pattern and extended the gains above $0.0300. In fact, the price formed a high around $0.03288 before the uptrend fizzled out giving way to the bears. The brief broad-based flash drop sent TRX/USD below the 12-day Exponential Moving Average EMA). The 20-day EMA did fight tooth and nail to stop the declines which bottomed at $0.0250.
A look at the daily chart, we see Tron sitting comfortably above the ascending trendline. This long-term trendline has stayed put since December 2017 when Tron plunged to lows around $0.0119. Therefore, in the event declines extend below $0.0250, the trendline support will function as a bouncing wall as it has done several times before.
In the meantime, TRX is holding tight to the weak support provided by the 20-day EMA. Bullish momentum is emanating from this level while TRX/USD is trading at $0.02702. Although, the slide on Thursday capped the upside at $0.03288 resulting in a drop to the key support, the 12 –day EMA has stayed above the longer term 20-day EMA and in turn confirm that the bulls have not lost it. In fact, the widening gap between the EMAs shows that the buyers are gaining traction against the sellers.
Tron price weekly outlook
The TRX/USD weekly chart shows Tron having a cluster of support areas to take advantage of in this slightly bearish trend. Apart from the initial support mentioned above at $0.0250, the second significant support is at the 50 Directional Movement Average (DMA) currently at $0.024225. Moreover, the 21 Moving Average (MA) coincides with the 200 DMA to offer stronger support at $0.02262. In the long-term Tron has a bullish bias, although the upside, if any is remaining is limited below $0.03473.
Tron Price Key Technical Indicators:
Resistance 1: $0.03288
Resistance 2: $0.03473
Support 1: $0.0250
Support 3: $0.0200
50 DMA: $0.024225
200 DMA: $0.02262.
21 MA: $0.02262.