Technical Analysis and Market Entry: Tron Subject to a Potential Free Fall From a Bearish Pennant Structure

TRON
  • Tron price is moving within consolidation mode, however subject to further moves south.
  • TRX/USD price action has formed a bearish pennant pattern via the daily chart view.

TRX/USD: Recent Price Behaviour

The Tron price has done little over the last seven sessions, as the price consolidates. Despite the relatively limited price action, there are some growing signs that the bears are set to resume full control. It comes after the market bears commenced a strong trend south at the latter stages of June. TRX has dropped as much as 70%, given the loss of momentum up at the $0.04 territory.

There were several strong technical confluences for this aggressive move to the downside. Price action had formed a double top in June, which was also an ‘M’ structure, resulting in a neckline breach. The market bears then managed to breakout and retested a key supporting ascending trend line. Along the falling south which is still being observed, there have been numerous bearish consolidation patterns, that the bears managed to capitalize on.

TRX/USD daily chat.

Web Browser Opera Announces Tron Support

A leading web browser Opera, which has a huge user base of some 350 million, has announced its full support for TRON. It has integrated Tron (TRX) into its browser; users will be able to send and receive TRX easily. Furthermore, they can access their favourite decentralized applications (dApps) right from the built-in dApps store, as per the company’s press release.

The moves come after the smooth process of integrating both Bitcoin (BTC) and Ethereum into its browser. These are efforts from the browser to accelerate on its growth of decentralized finance. Back in July, Opera did integrate Tron (TRX) into its beta version of the browser. It allowed a select group of users ass their TRX tokens, in addition to supported apps initially.

Following the announcement, Justin Sun, Tron founder, commented:

Opera is one of the most important software companies in the world. They are bringing security, privacy, and dynamic crypto capabilities to hundreds of millions of users. We are proud to connect the largest, active blockchain ecosystem to the best web browser ever built.

Trade Recommendation

TRX/USD has formed a bearish pennant structure via the daily chart view, given the current technical set up; further moves lower are eyed. In terms of targets to the downside; $0.01350, $0.01200 and then $0.01115. Entry will be around the current market price, with stops placed just above the pennant at $0.01650.

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.

Featured image courtesy of Shutterstock.

Author:
Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.