Tron Price Analysis: TRX/USD Bullish Divergence Seen!
Tron recently bounced off the bottom of its range and is showing a bullish divergence to signal further upside. As highlighted below, stochastic made lower lows in the last week of March while Tron had higher lows.
The oscillator is already pulling up from oversold conditions to confirm that buyers are taking the reins. This could pull TRX/USD back up to the resistance at 0.055 next.
The 100 SMA is below the longer-term 200 SMA, though, so the path of least resistance is to the downside. Then again, the gap has narrowed enough to hint at an upward crossover and return in bullish momentum. These moving averages could hold as near-term inflection points as well.
Investors are looking ahead to the Tron testnet launch, which founder Justin Sun announced last week. Recall that Tron has been using the ethereum platform as its primary blockchain but will soon release its dependence on this. It means that their primary objective is to migrate the 100 million users currently on the ethereum-based network to Tron’s central system by June.
According to Sun, his plan with Tron is to decentralize the web itself in order to protect user privacy and commercialize creative content.
Meanwhile, the dollar is putting up a good fight as risk aversion has returned on global tensions. In particular, China’s announcement of higher tariffs on a wide range of US imports marked the first warning shots of a trade war. The White House is scheduled to print their list of Chinese products subject to higher duties this week.
Also due from the US is its March jobs report, which may or may not shore up tightening expectations depending on the results. Keep in mind that the Fed already hiked in March and signaled only three tightening moves for the year, much to the disappointment of bulls, but another upbeat jobs release could revive expectations for four hikes.