Tron (TRX) Price Analysis: Another Selloff Signal After Area of Interest Test
Tron found resistance at the area of interest or former support around 0.042, signaling that the selloff could resume from here. In addition, a small head and shoulders pattern formed to confirm that a downtrend is in the cards.
Price broke below the neckline support to confirm that selling pressure is picking up, but the 100 SMA is still above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. This means that there’s still a strong chance for the climb to resume.
RSI is moving lower but is dipping into oversold territory to indicate that bearish momentum is slowing. Similarly stochastic is in the oversold region, which suggests that buyers might take over as soon as the oscillator moves back up.
Unlike most of its cryptocurrency peers, Tron has had a rough week and has been unable to sustain its rally. The altcoin just completed its mainnet launch and it looks like investors are simply booking profits off the anticipation on the lack of further fanfare.
Besides, the dollar is regaining footing on hawkish FOMC expectations since the minutes of the June meeting revealed that policymakers were in agreement on maintaining the gradual pace of tightening. Although trade tensions still pose uncertainties, it looks like they are confident about their growth and inflation outlook.
The upcoming NFP release could still impact dollar action before the end of the week, though, as leading indicators have been hinting at a downside surprise. Analysts are already expecting smaller jobs gains for June but there could be some room for more disappointed as shown by the ADP figure and ISM non-manufacturing PMI.
In the absence of any other updates from Tron or other altcoins, price action could hinge on overall market sentiment and dollar demand from here.