Tron Price Analysis: TRX/USD Correction from Bullish Breakout
Tron formed an inverse head and shoulders formation to signal that a reversal from the downtrend is underway. It already broke past the neckline resistance at 0.04 to confirm the rally but has since pullback after reaching the 0.05 area.
The 100 SMA is safely above the longer-term 200 SMA on the 1-hour time frame to confirm that the path of least resistance is to the upside. This means that the uptrend is more likely to resume than to reverse. The 200 SMA also lines up with the area of interest to add to its strength as support from here.
If it holds, Tron could make its way back up to the latest highs and beyond. Note that the reversal pattern is around 0.0015 in height as it spans 0.025 to 0.04 so the resulting uptrend could be of the same height.
Stochastic is staring to pull out from oversold levels with a slight bullish divergence as price made lower lows while the oscillator had higher lows. RSI also looks ready to head up as well so Tron could follow suit.
On longer-term charts, it can also be seen that Tron bounced off a long-term range support and may have bullish momentum to head back to resistance. However, dollar demand has returned on easing trade war jitters, which has weigher on riskier holdings like cryptocurrencies as well.
Still, Tron has some catalysts coming up, particularly is its main net launch which will make it no longer dependent on ethereum. This will come in the form of its Exodus update which many investors are eagerly awaiting.
If all goes to plan, this will make Tron transactions much cheaper or practically free. Tron Labs have stated that the network will support ultra-low transfer fees of a millionth of TRX, which would render it more appealing compared to its rivals. It can also allow the network to scale massively and support custom smart contracts written in languages such as Java.