Tron (TRX) Price Analysis: Falling Wedge Consolidation
Tron formed lower highs and slightly lower lows to consolidate in a falling wedge pattern. Price is currently sitting at the bottom of this formation and might be due for a bounce back to the top.
It’s also worth noting that Tron is nearing the peak of its formation so a breakout might happen sooner or later. The wedge spans 0.032 to 0.060 so the resulting move could be of the same size.
The 100 SMA is below the longer-term 200 SMA to hint that the path of least resistance is to the downside or that a break lower is more likely to happen than an upside break. Price also seems to have consolidated in a small bearish flag, which is often considered a continuation pattern.
However, RSI is starting to climb out of the oversold region to signal a return in bullish momentum. Stochastic is already on its way up so buyers could take Tron price higher from here. However, the moving averages could hold as near-term resistance levels.
Reports that Twitter visited TRON Foundation revived hopes that the social media platform could lift its ban on ICO ads, allowing the altcoin to hold steady from its drop.
Recall that bans on ads from ICOs and cryptocurrencies by Facebook and Google resulted to massive declines in price earlier on, but the former has already reversed its stance on ICOs. If Twitter follows suit, it could renew investor interest in the industry and lead to stronger liquidity.
Tron has been sliding on the lack of momentum after the mainnet launch, although the steps were completed without much glitches. Some are also buzzing about a possible partnership between Twitter and TRON Foundation, which could also lead to a strong boost for this particular altcoin.