Tron (TRX) Price Analysis: Hovering at Triangle Support
Tron has formed lower highs and found support at 0.038 to create a descending triangle pattern. Price just bounced off the bottom and might be due for another move to the top around 0.045.
The 100 SMA is below the longer-term 200 SMA to signal that the path of least resistance is to the downside or that the selloff is more likely to resume than to reverse. The 100 SMA also seems to have held as dynamic resistance on the latest bounce and the 200 SMA is just below the triangle top to add another ceiling.
RSI is heading south so Tron could follow suit while sellers stay in control. Stochastic is also heading lower to reflect the presence of bearish pressure, but the oscillator is dipping into oversold territory already. This suggests that sellers might be exhausted and that buyers could take over soon.
Strong bullish momentum could spur a break past the triangle resistance and lead to a rally that’s the same height as the chart formation, which spans 0.038 to 0.058. Similarly a move below support could spur a drop that’s the same size.
Tron barely gained any bullish momentum following its mainnet launch earlier this month as investors are still waiting to see how the shift turns out. It doesn’t help that the focus shifted back to security issues and regulation for cryptocurrencies over the past few weeks.
To add to that, risk aversion has been in full swing owing to the trade tensions between the US and China, as well as other allies like Canada and the EU. Escalation of these issues could mean more risk-off flows, which tend to be negative for riskier assets like Tron and other altcoins.
Also, Japan is increasing efforts to oversee exchanges by releasing requirements when it comes to preventing money laundering and terrorist financing activity. This led some platforms to temporarily halt trading activity to comply with the restrictions.