TRXUSD Analysis: Tron [TRX] Recovery Will Be an Uphill Task; $0.05 Remains to Be a Mirage?

By John Isige
Published August 7, 2019 Updated August 7, 2019
Best Buy In

Exchanges

Wallet

tron
Source: Shutterstock

TRXUSD Analysis: Tron [TRX] Recovery Will Be an Uphill Task; $0.05 Remains to Be a Mirage?

By John Isige
Published August 7, 2019 Updated August 7, 2019

The technical picture has a bearish bias in both the short-term and long-term timeframe as the Tron price range-bound between $0.020 and $0.024. Tron continues to languish in extreme selling pressure despite the market experiencing a shallow recovery from the levels hit last week. The daily chart displays a clear picture of an asset that has forced its way below support after support.

Tron Key Analysis points

  • Support Areas: $0.020 (Primary Support).
  • Resistance Areas: $0.024, $0.030 and $0.04.
  • MACD: Shallow divergence hints bullish correction in the near-term

TRX/USD daily chart

Tron price
Chart source: Tradingview

The ascend to June highs was incredible. Tremendous gains and sustained gains forming a higher low pattern pushed Tron to levels past $0.045. While investors hoped to see TRX above $0.05, the price formed a high at $0.04533 (Fibonacci swing high) before the retreat exodus began.

The declines initial infiltrated the ascending trendline support before forcing Tron on vital levels. The next support target at the 38.2% Fib retracement level taken between the last drop from $0.04533 to lows around $0.02 did nothing to stop the losses. Tron extended the exodus below $0.25. Luckily, an avalanche of buying power at $0.02 offered refuge to the bulls.

At the moment,

Tron is trading below March lows although there was a shallow recovery in the first week of August. The technical picture has a bearish bias in both the short-term and long-term timeframe. What is clear is the strong support at $0.020, besides Tron, is predicted to stay in a range between $0.020 and $0.024.

The Moving Average Convergence Divergence (MACD) has been stuck within the negative territory since mid-July. There is a slightly bullish divergence suggesting Tron’s ability to defend the support at $0.02. Moreover, the 50 Simple Moving Average (SMA) double-cross under the 100 SMA means that the price will make a lower consolidation.

advertisement

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
John Isige
1164 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige