Tron is trending lower but is currently testing a significant upside barrier at the descending trend line on the 4-hour time frame. This lines up with a former support area against bitcoin, and a break higher could lead to a longer-term reversal.
Applying the Fibonacci retracement tool on the latest swing high and low shows that this is around the 50% correction level and the 200 SMA. The 100 SMA is below the longer-term moving average, though, so the path of least resistance is still to the downside. In other words, the selloff is still more likely to resume than to reverse.
In addition, stochastic is indicating overbought conditions, which means that buyers are exhausted and willing to let sellers take over. If so, Tron could fall back to the swing low against bitcoin or even lower. RSI is on the move up to show that the correction could still go on, but the oscillator is nearing overbought levels as well.
Reports that Tron founder Justin Sun provided funding for BitGuild supports news that this particular altcoin has several potential applications and could see more upside. Bitcoin has also been generally supported recently as it bounced off a key technical zone and is setting its sights on the next.
Tron is a blockchain-based platform that seeks to decentralize the internet, or rather content-sharing on the internet, ensuring that artists, creatives, musicians, authoring can release their content without having to use a middle company, be it Amazon, YouTube, Apple, or Facebook. It was created by 26-year-old Justin Sun, a self-proclaimed protegé of Alibaba chief executive and billionaire Jack Ma.
So far, Tron has been striking partnerships with Chinese video hardware and software provider Baofeng and largest bike-sharing company in Singapore oBike. Sun hinted that it has a partnership in the pipeline with a space exploration company and Alibaba itself, although these have yet to be confirmed.