Crypto Update: Tron a Good Buy on Dips
Success in trading and investing can sometimes depend on a person’s perspective. When TRON (TRX/BTC) dropped to 0.00000259 on August 16, 2018, it was down by over 87% from the 2018 high of 0.00002047. A trader focusing on these losses would likely to stay away from the market.
On the other hand, another trader might see the plummet as a chance of a lifetime. The staggering devaluation in less than a year should provide ample of opportunities to increase one’s investments. This trader will likely study a market that looks close to its grave just like TRON.
That’s exactly our perspective. So far, we discovered that TRON has the potential to more than double your investment even before starting a bull run. In this article, we reveal why TRX/BTC is a good buy on dips.
Accumulation at Key Support
While the market nosedived to 0.00000259, participants immediately rejected lower prices and brought TRON back above 0.000003. That’s not a coincidence. A look at the longer time frame reveals that 0.00000315 is a high demand area. It appears that buyers are ready to step in once the market hits this level.
Weekly chart of TRX/BTC
Bulls defended this key support from August to November 2018. This gave market participants three months to accumulate positions at these levels. The establishment of a firm base should help TRON ascend to the top end of our range of 0.00000945.
Possible Formation of a Double Bottom Pattern
Looking at TRON’s weekly chart, it is very tempting to say that the bottom is already in. This is something that we won’t be able to assert with confidence. However, we can already see the possible emergence of a double bottom structure.
Double bottom pattern on the weekly
As long as the market stays above 0.00000315, this pattern remains valid. The likelihood that this structure will materialize depends on the price action on the shorter time frame. Therefore, we also looked at the daily chart to check for patterns that support our view.
Emergence of Bullish Patterns on the Daily Chart
Switch to the daily chart and you’ll quickly notice that the price action over the last two weeks is bullish. It appears that after breaching resistance of 0.000004, TRON is creating a large bull flag.
Bull flag on the daily
The formation of a bull flag suggests a brief pause of the short-term bullish trend. Breach of 0.0000056 will likely lead to another explosion. As long as TRON stays above 0.0000048, the pattern remains valid.
On top of the bull flag, another bullish pattern that we’re looking at is the inverse head and shoulders structure. This pattern’s breakout also relies on the breach of 0.0000056
Inverse head and shoulders on the daily
With the formation of these bullish patterns, it appears that TRON is en route to revisit the top end of the range of 0.00000945.
Although TRON lost over 87% of its value at one point this year, it appears that the market is roaring for a comeback. The accumulation at a key support area plus the formation of bullish patterns on the longer and shorter time frames make TRON a very good candidate to buy on dips. As long as the market stays above 0.000004, it will likely gather the momentum to climb to the top end of our range of 0.00000945.
In this case, those who buy the dip and hold are likely to double their investments even before TRON starts a proper bull run.