The Tron (TRX) price is attempting to break out from a crucial horizontal level at $0.055. While this seems unlikely, a successful breakout could kickstart a bullish trend reversal.
TRX is the native token of the TRON blockchain, created by Justin Sun. The TRON ecosystem contains various other digital assets.
The technical analysis from the weekly time frame for TRON is bearish. The TRX price has fallen underneath a descending resistance line since April 2021.
The line caused six rejections until now (red icons). More recently, it did so on Nov. 7, also causing a breakdown from the $0.055 support area. This was a crucial development since the area had acted as support since March 2021.
The weekly RSI is bearish. The indicator is decreasing below a descending resistance line and is below 50 (red icon). This suggests that the trend is bearish.
Despite these bearish readings, the TRON price is in the process of re-testing the $0.055 area. If it reclaims it, it will render the previous breakdown invalid and could cause a breakout from the resistance line.
However, due to the bearish readings, this seems unlikely.
TRON Price Short-Term Breakdown
The six-hour chart aligns with the readings from the weekly time frame. It shows that the TRX price broke down from an ascending support line and validated it as resistance afterward.
Additionally, it shows that the $0.055 resistance area is the 0.5 Fib retracement resistance level of the most recent drop, strengthening its legitimacy.
While another upward movement has developed over the past 24 hours, it has also generated a bearish divergence in the RSI (green line). When combined with the fact that the TRX price is trading inside resistance, it makes a rejection and downward movement more likely.
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BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.