Tron (TRX) Price Analysis: Correction from Bullish Trend
Tron is trading inside an ascending channel with its higher lows and higher highs since September. Price recently bounced off the resistance and is pulling back to the mid-channel area of interest, which lines up with the 38.2% Fibonacci retracement level.
A larger correction could last until the 61.8% level that lines up with the bottom of the channel, a former resistance area, and the 0.02400 mark. The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside or that the rally is more likely to resume than to reverse. This moving average is also close to the channel support to add to its strength as a floor.
Stochastic is heading south, indicating that bears have the upper hand while bulls are taking a break. RSI is also moving lower so Tron could follow suit while selling pressure is present.
There has been a lot of hype surrounding Tron lately, most of it spurred by founder Justin Sun’s tweets as usual. One of his latest announcements read:
Based on community consensus, #TRON will be upgrading to Odyssey 3.1 at 8pm SGT. The TRON Committee function & TVM will go live, marking the start of the Smart Contract Era. TRON will be 200x faster vs. ETH, 100x cheaper vs. EOS. dApp developers & users, this one is for you! $TRX
In an earlier interview with Investopedia, Sun explained:
“It costs a fraction of one TRX to support smart contracts on the TVM and to create TRON accounts. Because the cost is so minuscule, we say ‘almost free’. By comparison, creating and supporting contracts on Ethereum and EOS can cost a user more than $10.”