Tron (TRX) Price Analysis: Major Correction Still Going On Ahead of Mainnet Launch
Tron failed to make it all the way up to the swing high after its recent bounce, signaling that the daily correction is still going on. Revisiting the Fib levels on this time frame shows that price is gearing up for a test of the 61.8% level that lines up with an area of interest or former resistance.
A bounce off this area could still lead to a move up to the swing high at 0.1000 or higher. However, a break below 0.0500 could signal a move towards the bottoms at 0.0300. Price has fallen below the 100 SMA dynamic support on this daily time frame to indicate a pickup in bearish pressure.
RSI is also moving down to show that bears have the upper hand. Similarly stochastic is pointing south and drawing sellers in, so Tron price would likely follow suit until oversold conditions are reflected.
Several exchanges have already begun efforts ahead of the highly-anticipated mainnet launch, but it’s understandable that there’s some liquidation going on ahead of this event risk. Coin dumps are rumored to take place, possibly driving the value back down anyway.
Meanwhile, the dollar remains strongly supported by rising Fed hike expectations and risk-off flows. Political tensions in Europe are being seen as the main factor keeping risk-taking in check, driving traders to the safe-haven US dollar. Italy and Spain could see elections soon, and further conflict could drag riskier assets like altcoins down.
Tron is rumored to be close to acquiring BitTorrent in its effort to further decentralize the internet. Nonetheless the mainnet launch at the end of this month would likely be a catalyst for volatility as this would allow Tron to be independent of the Ethereum network and also allow developers to create decentralized applications on the network.