Tron has formed higher lows and higher highs to trade inside an ascending channel on its 1-hour chart. Price is pulling back to support and might be due for a bounce off the Fibonacci retracement level.
In particular, the 61.8% level is closest to the channel bottom around 0.0700 and might be enough to keep losses in check. This is also close to the 200 SMA dynamic support.
Speaking of moving averages, the 100 SMA is above the longer-term 200 SMA 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. In that case, Tron could recover to the swing high at 0.0844 or move to the channel top around 0.0850.
RSI is already indicating oversold conditions, which suggests that the downside move could be over soon. Similarly stochastic is in oversold territory and turning higher could draw bulls back in. However, a break below the channel bottom could lead to a move to the swing low near 0.0650 or lower.
Anticipation is building for the Tron mainnet launch and also of the virtual machine release in a few days. Founder Justin Sun has been excitedly tweeting updates and could continue to keep investors in the loop as the launch draws near.
However, the cryptocurrency has been in a rough patch over the past few days on the lack of upbeat developments and on recent negative commentary from FOMC member Neel Kashkari. He said:
“It’s a clever idea that some people came up with, but now it’s being taken to ridiculous extremes. The barrier to entry to creating a new cryptocurrency is zero.”
This spread further doubts among newer investors, who likely cashed in on their positions as altcoins are having trouble staying afloat in the midst of risk aversion in the financial markets.