Crypto Update: Tron/Ethereum Ready for Bottom Pickers
TRON/Ethereum (TRX/ETH) caught fire and the attention of crypto enthusiasts earlier this year. The pair opened 2018 with a bang as it took out resistance of 0.000065 and ignited a parabolic run that saw TRX/ETH move as high as 0.00032 on January 5. In less than a week, the market grew by almost 400%!
As expected, the surge was met with profit-taking. Since then, TRX/ETH has been consolidating. However, it appears that the eight-month consolidation is coming to an end. In this article, we reveal why TRX/ETH looks ready for both, bottom picking and breakout trading.
Tron/ Ethereum Ripe for Bottom Picking
In technical analysis, resistance turn into support levels when breached. In the case of TRX/ETH, the pair has taken out 0.000065 twice this year. The first one was on January 1 and the second was on March 20. Based on this alone, we can expect demand to increase when the pair touches this level.
Daily chart of TRX/ETH
On top of that, we can also see the pair’s long-term support converging at 0.000065. This confirms the idea that 0.000065 is an area where demand exceeds supply.
If the converging trend lines are not enough to convince you that a bounce is at play, take a quick look at the technical indicators. We can see bullish divergences on the RSI and Stochastics. This tells us that TRX/ETH is gaining bullish momentum even though the price is still falling.
Ready for Breakout Trading
From a long-term perspective, TRX/ETH is trading inside a large symmetrical triangle. This pattern is visible in both the daily and weekly charts.
Symmetrical triangle pattern
With a strong case for a rally once the market touches 0.000065 we can expect TRX/ETH to break out of the symmetrical triangle formation. That should signal the end of the consolidation period and kickstart a strong bull run.
If TRX/ETH breaks out of the symmetrical triangle pattern, then we can expect the pair to skyrocket.
The top end of the current symmetrical triangle is the market’s strongest resistance. It’s so strong that it has kept TRX/ETH bearish for over eight months. If bulls take that out, they’ll be set to come close to the all-time high of 0.00032.
That’s because the only real resistance left is the one that’s trending upwards. As you can see on the chart, the pair is also trading inside a large bullish broadening wedge or megaphone pattern. The top end of this pattern can get TRX/ETH real close to 0.00032.
TRX/ETH has been bearish for the last eight months. Nevertheless, that period seems to be almost over as the pair looks ready to welcome the return of bottom pickers and breakout traders.
Featured image courtesy of Shutterstock.