Tron (TRX) Price Analysis: Bullish Break and Retest?
Tron recently made an upside break from the 0.04500 level, which was the neckline of a complex inverse head and shoulders pattern. This signals that an uptrend is underway, although price might need to complete this retest in order to gather bullish momentum.
Applying the Fibonacci retracement tool shows that the 61.8% level coincides with this area of interest or resistance-turned-support zone. It is also near the dynamic inflection points at the moving averages.
The 100 SMA is starting to cross above the longer-term 200 SMA to signal that the path of least resistance is to the upside. This suggests that the rally is more likely to resume than to reverse.
However, RSI is on the move down to signal that selling pressure is in play. This oscillator has some room to head lower before reaching oversold territory so bears could stay in control for a bit longer.
Stochastic is also heading south so Tron might follow suit but is already dipping close to the oversold region to signal exhaustion. If buyers return, a move back up to the swing high or higher could take place. Note that the reversal pattern spans 0.03800 to 0.04500 so the resulting rally could be of the same height.
Cryptocurrencies made a strong bounce since late last week when a senior SEC official suggested that digital assets like Ethereum shouldn’t be treated as securities and subjected to regulation like stocks or bonds.
Another boost came when New York’s FSA approved the license for Square’s Cash mobile app, which allows its customers in the state to trade bitcoin on their phones. Although this isn’t directly tied to Tron, this marked the first positive update in a long time, reviving upbeat sentiment in the industry.
However, a return in risk aversion this week on more tariffs threats from the US led to a dip in riskier assets, including Tron.