Technical Analysis and Market Entry: Tron (TRX/USD) – Further Moves Higher Still Eyed After Correction

  • TRX/USD remains on course for a further move to the north, despite the current high price volatility period.
  • The Tron community was less than impressed with the recent announcement from Founder Justin Sun.

The Tron price has been through a high amount of volatility, attempting to find some firmer footing. It has been on a roller coaster since mid-May, as TRX/USD strives for further moves to the north. Despite the choppy price action, Tron has been rallying to the upside for three consecutive weeks. It has managed to gain over 75% within the noted period, jumping to the high levels since July 2018.

The recent high, as noted above, saw TRX/USD push back into the $0.0400 price territory. It is a significant technical development for the bulls, having been stuck within the $0.02-$0.03 range throughout 2019 so far. Big range breakouts were seen across the cryptocurrency market with several of the altcoins.

Triangular Breakout

TRX/USD weekly chart.

TRX/USD was moving within the confinements of a narrowing triangular structure since June 2018. As the month went on, price action was having less room to move, as TRX got towards the end of the pattern. The price could have gone either way, but the bulls managed to capitalize and come out on top with the breakout higher.

Since then Tron smashed out to the upside from triangular formation,gaining a whopping 50%. A strong wave of buying pressure came into play, given the considerable resistance being breached. It now leaves the door open to further potential upside pressure, so long as the bulls maintain momentum. There is a possibility of a retest to play out to the textbook before new committed moves north come into play.

Warren Buffet Hype Faded

Since the back end of May, Justin Sun has been stimulating his community with a series of tweets, gearing them up for some ‘big news’. The hype-man managed to create much buzz of excitement and anticipation, as reflected in the aggressive push higher that was seen for TRX.

Sun finally announced via Twitter the news that all his followers should have been excited about, which was:

“I officially announce I’ve won the record-setting 20th-anniversary charity lunch hosted by Warren Buffett. I’ll also invite blockchain industry leaders to meet with a titan of investment. I hope this benefits everyone.”

Whether it was a coincidence or not, TRX/USD started to see some downside pressure, dropping as much as 16% in the session. The drop may have been profit-taking after such a considerable drive north. It could also mean the community was disappointed. There could have been larger hopes of development around the foundation and not just a dinner with Warren Buffet.

Trade Recommendation

TRX/USD daily chart.

Buys from the current price territory appear to be attractive, as TRX/USD is now using $0.03000 as a comfort area. The next major zone of interest for the bulls will be to firmly smash through $0.04000, with eyes to then be on a return to $0.05000. Tron last traded up at these heights in June 2018, when the price was within a steep bear market. In terms of stops, those should be eyed just below the psychological $0.03000 level followed by $0.02800.

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.