Tron (TRX) Price Analysis: Recovering from a Fakeout, Reversal Pattern in Sight
Tron closed below the bottom of its descending triangle at 0.038 to signal that further losses are underway, but price has clawed its way back in. It has even made its way up to the triangle top to attempt an upside break this time.
Another factor supporting more gains is the formation of an inverse head and shoulders pattern. This is seen as a classic reversal signal from a downtrend and price has already busted through the neckline resistance at 0.040.
The larger triangle pattern spans 0.038 to 0.058 so the resulting uptrend could be of the same height. However, the 100 SMA is still below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, resistance is more likely to hold than to break.
At the same time, RSI is crawling down from overbought conditions to indicate that selling pressure is returning. Similarly stochastic is moving south so Tron could follow suit. In that case, another test of support is possible.
Cryptocurrencies are off to a running start this month and quarter, although some analysts say that this is merely a dead cat bounce. It could also be attributed to profit-taking from earlier steep declines, which some blame on the expiry of CME futures contracts.
In any case, Tron and its peers appear to be attracting risk-on flows while stocks and commodities remain under pressure from looming trade war troubles. After all, any escalation could hit businesses first, along with global demand for commodities.
As it turns out, Tron already released the locked TRX tokens following its mainnet launch last week. Tron Foundation also announced that they burnt the first batch of TRX ERC20 tokens which amounted to $49 billion. This completes their migration away from the Ethereum blockchain to the new Tron blockchain.