Tron (TRX) Price Analysis: Waiting for More Bulls to Join In
Tron surged nearly straight up since breaking past a key level, but it looks like a pullback is needed to sustain the climb. Applying the Fibonacci retracement tool on the latest swing low and high on the daily time frame shows that the 61.8% level is closest to the area of interest at 0.05-0.06.
Stochastic is already indicating overbought conditions, also reinforcing the view that bulls may be exhausted and ready to book profits. In that case, sellers could take over and spur a correction to the nearby Fib levels.
The 38.2% retracement level is located at 0.073 and the 50% retracement level is at 0.065. If any of these areas keep losses in check, Tron could make its way back up to the swing high at the 0.100 major psychological mark.
On the other hand, a break below the lowest Fib could open the door for a move to the lows at 0.028.
Dollar demand has weakened significantly, though, particularly after the FOMC statement. Policymakers removed some key phrases, leading to speculations of a slower pace of tightening than initially anticipated.
With that, the US currency is weakening across the board leading up to the release of the NFP report. After all, weaker than expected results could convince more dollar bears to join in, and cryptocurrencies like Tron could take advantage of this behavior.
Tron recently announced another listing, spurring a big leg higher for the altcoin. TRX will be available on CoinTiger, which is a newly launched cryptocurrency exchange platform in Singapore.
The mood in the cryptocurrency industry has also been mostly positive, particularly after Goldman Sachs shared plans to launch bitcoin trading operations. Apart from supporting the industry’s legitimacy and following through on earlier reports of big financial firms investing in the space, this also represents a different view from CEO Blankfein’s statement on how bitcoin is in a bubble.