Technical Analysis and Market Entry: Tron Has Formed Two Strong Signs of a Trend Change
- The Tron price managed to stabilize over the last two weeks, resulting in the bulls capitalizing in an attempt for recovery.
- TRX/USD price action via the weekly has formed two morning star formations, indicating a trend reversal.
TRX/USD: Recent Price Behavior
The Tron price over the past few sessions is staging a rebound, after recently hitting the lowest levels since December 2018. Unexpected life has been kicked back into the bulls, following the drop down to $0.01400 price area. It comes following the severe downturn from late June onward. The price plummeted over 65% in one of the worst bear markets seen since the 2018 fall.
Nevertheless, TRX/USD has managed to stabilize from this attack of sellers, staging what looks to be a potentially promising rebound. The recent push to the north has come following a breakout from a narrowing range block formation. It had contained the price between 29 August up until 16 September. The breach has invited a stronger wave of buying pressure, which has been observed in the last two trading sessions.
The price had been free-falling for some ten weeks before being caught surprisingly ahead of a key support zone. Over the last two weeks, the weekly candlesticks have formed morning star formations. The noted patterns indicate a trend reversal to come, which has so far been followed through with a bullish candle on the current weekly.
Big Bear Barrier at $0.02000
The current upside momentum is carrying Tron back towards a significant barrier, seen heading into $0.02000. It had previously served as a significant area of support through a portion of the large bear market in 2018. The bears, however, did at one point squeeze the price below. It had resulted in the lows of 2018 down at $0.011150. A failure to break back about the psychological round number 0f $0.02000, could prove to be punishing.
TRX/USD bulls are at the time of writing back on their way through the zone into $0.02000, running from $0.01600 to the $0.01900 price range. It has not traded above this area since 14 August, when another bout of selling hit Tron. How TRX responds to this zone will likely dictate the coming trend.
Given the recent price developments, buy positions are gradually becoming attractive. Should TRX/USD break above and retest the current zone of $0.01600-$0.01900, then a long position will be on the cards. In terms of upside targets, $0.02300, $0.02500 and then $0.03000 are eyed. Stops would be placed just below the acting zone at $0.01570.
If a rejection is seen within the noted barrier territory, then another wave of downside pressure could come into play. The price could then be forced to retest the bottom area of 2018, down at $0.01150, which could spark much panic selling.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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