Tron Price Analysis: TRX/USD Currently in Consolidation
Tron has formed lower highs and higher lows, creating a symmetrical triangle consolidation pattern on its 4-hour chart. Price has just bounced off resistance and looks ready for another test of support at 0.035.
The 100 SMA is above the longer-term 200 SMA on the 4-hour chart to indicate that the path of least resistance is to the downside. This suggests that support is more likely to hold than to break or that a move past the resistance at 0.0425 could take place.
Note that the chart pattern spans 0.025 to 0.055 so a breakout in either direction could spur a rally or selloff of the same height.
Stochastic is pointing down to signal that sellers have the upper hand while RSI is slowly crawling lower, which suggests that Tron might follow suit.
Investors might be playing it carefully leading up to the testnet launch, which would remove Tron’s dependence on the ethereum network. This is in line with Justin Sun’s vision of using the cryptocurrency to decentralize the internet and a larger launch later this year that could widen its scope.
The altcoin space appears to be in a better mood these days after it was reported that large hedge funds, including the one from George Soros, are starting to invest in cryptocurrencies. This reflects a shift from their earlier sentiment that these assets are in a bubble.
Meanwhile, the dollar is on weak footing owing to a disappointing NFP report. This doused expectations for four interest rate hikes this year as the central bank could slow down its pace of tightening due to weaker hiring.
Traders could tune in to the US CPI release later this week to gauge any pickup in price levels that might still convince the Fed to hike sooner rather than later. Apart from that, further headlines indicating support for cryptocurrencies by big market players could lead to bullish moves.