Technical Analysis and Market Entry: Tron in Danger of Giving Back All of Its 2019 Gains
- TRX selling resumes, as the bears move in quickly to crush the recent rally.
- TRX/USD is moving within a near-term pennant structure, subject to a potential breakout south.
TRX/USD: Recent Price Behavior
The Tron price remains weighted to the downside, failing to maintain upside momentum after receiving support in a known buying area. TRX/USD has dropped some 28% within the last four days. The bear market resumed in late June after the price ran into a big supply zone. Market bulls lost control after TRX briefly reclaimed the $0.04000 price mark.
Since losing the bull run, TRX/USD has dropped almost 50%. The pressure was exacerbated to the downside after a key ascending trend line was also breached. It had been supporting the price since early May, providing the needed comfort for the bulls driving higher. The price has been forced to give up a significant proportion of its recovery gains of 2019.
Near-Term Bear Market Not Over
Most recently, the bulls attempted to stage a rebound after the price dropped to $0.02000. The drop came after the breakout followed by a retest of the noted ascending trend line. The pressure south gathered pace, given the technical confirmation of break and retest. A brief bounce was seen in a known demand zone, $0.02300-$0.02000.
TRX/USD from the noted area rallied 50%, pulling back into another important zone, $0.02800-$0.03100. It was a former acting demand, but now serves as supply. The failure to break back above shows that the bear market is not over, at least for the near-term.
The price is just one barrier away from returning to the low of 2019, where TRX commenced its recovery for the year. TRX/USD is approximately 25% from dropping to such levels. A breakdown of the current area, $0.02300-$0.02000, could facilitate this move should the bears capitalize.
2019 Recovery Gains at Risk
The price of Tron from the start of 2019 had been on such a stable path of recovery. TRX/USD started the year down at $0.01850 to then rise to heights of $0.04100. The upside was minimal at the point of $0.04000, proven on several occasions. There is a massive camp of selling within this noted region, not allowing the bulls to progress.
Price action is moving within a near-term pennant structure, which is subject to a potential breakout to the downside. A short is attractive at current levels, with targets to the downside of $0.02000, $0.01800 and $0.01400. Stops would be placed just above the noted structure at $0.02650, leaving enough breathing room.
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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