Tron [TRX] Price Analysis: After Five Unsuccessful Attempts at Breaking Above Resistance, Where Will Price Go Next?

Tron Price Analysis

Tron [TRX] Price Analysis: After Five Unsuccessful Attempts at Breaking Above Resistance, Where Will Price Go Next?

Price is currently trading inside a minor support area at $0.023. Furthermore, it has been following a descending resistance line and has been rejected four times so far by it. The resistance line has been in place for 52 days. The drop was preceded by bearish divergence in the RSI. After the drop, the price has struggled to break out above the 0.382 fib line at $0.025 and is currently in the process of making a triple bottom.

Key Highlights

  • There is major resistance near $0.035.
  • There are three support areas: $0.023 (minor), $0.021 (minor), $0.018 (major).
  • Price has been following a descending resistance line for the past 52 days.
  • Price has not retraced above the 0.382 fib line of the entire drop.

Tron Price Analysis – TRX/USD – 2-Hours chart

A look at the 2-hour chart shows that price is trading inside the first minor support area near $0.023.  If the support area fails, the next ones can be found near $0.021 and $0.018 (major). We can also see that price has been following a descending resistance line and has been doing so for the past 52 days, since reaching the top at $0.035. After five unsuccessful attempts at breaking out above the resistance line, price generated bearish divergence with the RSI, and a sharp drop ensued. The drop occurred on significant but not extreme volume.

Also Read: Bitcoin [BTC] Price Analysis: Price Broke Down From The Ascending Support Line, What Is Next?

As for the indicators, the price is trading below the 7 and 21-period moving averages which have made a bearish cross and are offering very close resistance to the price. The RSI is at 28, indicating oversold conditions.

Tron Price Analysis – TRX/USD – 15-Minutes chart 

A look at the 15-minutes chart shows that after the drop from $0.027 price made a temporary bottom at $0.023, where it is currently trading now. Price has tried unsuccessfully to break out above the 0.382 fib line above $0.025. It formed a temporary support area which now has turned into resistance (red rectangle). This movement has been going on for roughly six days. Currently, it seems like the price has made a triple bottom (bullish reversal pattern) combined with a bullish divergence in the RSI. It is worth noting that the volume on bearish candles has been significantly higher than that on bullish candles.

As for the indicators, the RSI is at 45, after briefly being in oversold territory.

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Tron [TRX] Price Analysis: After Five Unsuccessful Attempts at Breaking Above Resistance, Where Will Price Go Next?
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Tron [TRX] Price Analysis: After Five Unsuccessful Attempts at Breaking Above Resistance, Where Will Price Go Next?
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Price is currently trading inside a minor support area at $0.023. Furthermore, it has been following a descending resistance line and has been rejected four times so far by it. The resistance line has been in place for 52 days. The drop was preceded by bearish divergence in the RSI. After the drop, the price has struggled to break out above the 0.382 fib line at $0.025 and is currently in the process of making a triple bottom.
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Valdrin Tahiri 35 Articles

Valdrin is an eager trader, cryptocurrency enthusiast, and freelance writer. He specializes in technical analysis, indicators and charting guides. Reach out to him at [email protected]