Tron Price Analysis: TRX/USD Double Bottom Alert!

Tron Price Analysis: TRX/USD Double Bottom Alert! 13

Tron is forming a double bottom pattern on its 1-hour time frame, which is considered a classic reversal signal. Price failed in its last two attempts to break below the 0.03 level, creating this formation with the neckline at 0.035.

A break above this neckline could lead to a rally of the same height as the chart pattern. However, price has yet to surge past the 100 SMA dynamic inflection point to lead to a test of this barrier.

Speaking of moving averages, the 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, the downtrend is more likely to resume than to reverse. Also, the gap between the moving averages is widening to signal strengthening bearish pressure. In that case, a move below the latest lows is still a possibility.

Stochastic is pointing up to show that buyers still have some energy left in them, though. However, the oscillator is also nearing overbought conditions to signal that selling pressure could return sooner or later.

Tron Price Analysis: TRX/USD Double Bottom Alert! 14

Risk aversion has been popping back in and out of financial markets, driven by the uncertainty spurring from the trade spat between the US and China. The latter has initially published a list of products to slap higher tariffs on while the former is due to release a list of companies subject to higher duties.

This back and forth could keep dampening investors’ demand for riskier assets like cryptocurrencies, driving them to lower-yielding assets or safe-havens like gold and the dollar.

Still, Tron has its testnet launch coming up and this would remove its dependence on the ethereum network. Analysts have mixed views on this event, although it could provide some upside opportunity for this particular altcoin if all goes well.