Technical Analysis and Market Entry: Tron (TRX/USD) Sees Big Areas of Support Backing Imminent Bullish Moves
- TRX/USD has been cooling for June so far, dropping around 28%, after touching heights of $0.04100.
- There is much comfort seen via the daily chart view to further support the bulls in regathering upside momentum.
TRX/USD: Recent Price Behavior
The Tron price is still battling it out to find stable footing, as it remains stuck within a cooling period. Since the beginning of June, TRX/USD has been forced lower by the bears, dropping as much as 28%. The fall started to occur after Tron managed to print its highest level seen since July 2018, up at $0.04100.
The bulls had enjoyed a strong push higher from the start of May up to the top area noted on 2nd June. An advance of 80% occurred over the mentioned period, as the bulls turned it up a notch with recovery.
Despite the current edging lower as described above, this is not to say a turn around in the trend this month cannot be seen. There are some notable confluences of solid support for Tron within this period of bearish control.
Confluences of Support
As detailed earlier, TRX/USD pushed higher through May-early June, as the price was guided north by an ascending trend line of support. It had been providing comfort for the bulls from 10th May, when TRX began its climb. Life was kicked back into the buyers down at a known area of demand, which tracks from $0.02100-$0.023500.
The ascending trend line is in proximity to the current price area, around the psychological $0.03000 mark. It recently supported Tron between 9-10 June, preventing a free-fall south. Should the trend line be broken, at this stage could be devastating.
Just below the supporting trend line, there is a demand zone which tracks from $0.03100 down to $0.02800. It has recently proven to prop up the price seen on occasions from the back-end of May up to the time of writing. The noted area previously served as a very stubborn territory of supply, having given the bulls much difficulty in breaking down.
Lastly, in terms of support, the 61.8% Fibonacci level at $0.02900 has capped the bears from further downside. It came into action as earlier mentioned between 9-10 June in confluence to the ascending trend line of support. It is measured from the swing low on 10th May down at $0.02250, up to the swing high on 2nd June at $0.04100.
Given all detailed areas of support, a buy position is increasingly looking attractive. Should the ascending trend line continue to provide comfort, another bounce north could very well be seen. To the upside, the first target would be for a retest of the June high at $0.04100.
Further north, a return to the psychological $0.05000 territory, last traded up at these heights late in July 2018, would be the target. Stops may be considered at $0.02800, leaving enough breathing room below – that is, at the 61.8% Fibonacci, which is an ascending trend line and key demand zone.
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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