Tron (TRX) Price Analysis: Early Selloff Signal But Long-Term Bottom Still Holding
Tron is making its way below the short-term consolidation triangle previously highlighted, signaling that bears are gaining the upper hand. The longer-term triangle bottom still seems to be intact, though, but a continued drop could draw more sellers in.
The 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. This means that the selloff is more likely to resume than to reverse or that support is more likely to break than to hold. In addition, the moving averages are close to the top of the triangle around 0.06500 to add to its strength as a ceiling.
RSI is heading lower to show that sellers have the upper hand and could push for more losses. The short-term triangle spans 0.06500 to 0.05500, so the resulting drop could be of the same height. Stochastic is also moving down to signal that selling pressure is in play.
Tron investors are still in limbo when it comes to updates from the mainnet launch, so the uncertainty is keeping consolidation in play while some are liquidating positions in the meantime. So far, Odyssey 2.0, is still in its initial stage with testing for bugs and the company has a bounty program for any code errors spotted.
Nonetheless, the company continues to make partnerships that could leverage the various applications of Tron. Analysts believe that it’s only a matter of time before these dapps kick in and unleash the upside potential of Tron.
The Tron MainNet will become officially independent on June 25, 2018. ERC20 deposit services for Tron Office Website have come to an end on June 6, 2018 12:00, and ERC20 withdrawal services for Tron Office Website will end on June 22, 2018.
In contrast, the dollar is regaining some ground on profit-taking as the end of the week draws near. The upcoming G7 Summit could also pose some risks so flight to safety is seen.