Tron (TRX) Price Analysis: Heads Up for this Upside Breakout!
Tron was previously consolidating inside a symmetrical triangle as it formed higher lows and lower highs. Price just recently broke through the resistance to confirm that buyers are back in the game.
On the longer-term time frame, it can be seen that this Tron consolidation took place just above a retracement level. This upside break suggests that the Fib has held as support and that the uptrend is ready to resume.
The 100 SMA has crossed above the longer-term 200 SMA on this time frame to confirm that the path of least resistance is to the upside. In other words, the uptrend is more likely to continue than to reverse.
However, RSI is turning down from overbought levels to signal a return in selling pressure. Stochastic is also heading back down to indicate that bears could still return or at least trigger a pullback to the broken triangle top and area of interest at the moving averages.
Tron traders are eagerly awaiting the mainnet launch that would make this altcoin independent of the Ethereum network. Doing so could open up a host of benefits for Tron, which could lead to stronger volumes and activity, thereby boosting its value down the line.
However, one argument against this is that it has a very high coin supply. Then again, it is doing coin burns to reduce this supply and likely keep value supported.
Note that Tron is also gearing up to launch a virtual machine by the end of this week as tweeted by founder Justin Sun. This virtual machine will allow for “complete compatibility” with Ethereum’s virtual machine so Dapps built on the latter’s network could still be used with Tron. According to Tron labs:
“[We] will be able to break away from Ethereum and its low-efficiency, congestion-prone network, high fees, and steep learning curve. We will open the doors to a new cryptocurrency stage focused on scaling and commercialization, providing next generation infrastructure and express lanes needed for global dApp development.”