Tron (TRX) Price Analysis: Stuck in a Triangle, Waiting for a Break
Tron has formed lower highs and found support at 0.0600 to create a descending triangle pattern. Price is currently testing support and could be due for a bounce soon.
However, the 100 SMA remains below the longer-term 200 SMA to confirm that the path of least resistance is still to the downside. This suggests that a drop is more likely to happen than a bounce. In that case, Tron could fall by the same height as the chart formation, which spans 0.0600 to 0.1000.
RSI is pulling up from oversold levels, though, so buying pressure could still return. A bounce could still hit a ceiling at the 0.0675 level that lines up with the triangle top and 100 SMA dynamic inflection point. On the other hand, stochastic seems ready for another round of declines.
Tron has already started the transition to its own blockchain, independent of the ethereum network, so it’s understandable that investors are nervous. The beta testing for this mainnet will last for the entire month of June so it’s possible that further consolidation could take place in the next few weeks.
According to founder Justin Sun:
The independence of our protocol is a crucial step in ushering in the next phase of the internet through democratization and decentralization. Our team maintains a high standard of excellence as we head towards becoming a mainstream public blockchain. The move of the TRON Protocol to MainNet makes it easier for developers to break away from Ethereum and opens up new doors towards better scaling, commercialization and express lanes needed for global dApp development.
The transition will culminate on June 25 when the Genesis block will propagate across the network. Any troubles that may arise before this could lead to a drop in Tron price as investors worry that it could not live up to the hype.