Technical Analysis and Market Entry: Tron (TRX/USD)
- The Tron (TRX) price is moving within consolidation mode after being forced to give back most of early April advance.
- A further dip for TRX/USD could present buying opportunities, with the scope of creating new highs for 2019.
The Tron price is stuck within consolidation mode, edging to the south and running at its second consecutive session in the red. It comes after a strong move to the upside; this was seen at the back end of March to the early part of April. TRX/USD had gained over 40% from the start of the bullish run on 27th March up to $0.03200 printed on 8th April. The price had managed to hit its highest level seen since 2019 high up at $0.03600.
In terms of the above-detailed push north, the bulls had the momentum swiftly taken away from them. A large area of supply can be observed running from the psychological $0.03000 mark up to $0.03200. The price has struggled to push above this zone through 2019 so far, proving to be a difficult region for the bulls to break down. Aside from the brief aggressive short-lived spike above 10th January, TRX/USD has not comfortable traded above seen May 2018.
Buy on Next Drop
TRX/USD is moving within a narrowing range-block formation, which began to take shape on 12th April. As detailed earlier, the price has been forced to consolidate after running into the big pack of sellers. The noted tight trading conditions for Tron of late is seen at a range low of $0.02570, with the high up at $0.02750. Given the limited price action due to the block’s confinements, the next move is very likely to be explosive.
Should the bears manage to force a breakout to the downside, then this could present a decent buying opportunity. A chunky area of demand can be observed just below, which is tracking from $0.02320 down to $0.021000. The price had last traded firmly down within this zone back on 27th March, when the bulls managed to regain momentum. TRX/USD has been supported by this region throughout 2019, consistently proving to prop up the price, in times of need.
Given the current price behavior, eyes are on for a potential move south before a further committed move north. Buyers will likely be waiting for another retreat to the noted demand zone. The dip could then present itself as an opportunity for the Tron price to be bought on, with comfort in mind of how strong the support has proven to be. The next wave of buying pressure down here could be stronger than the recent run, given the break higher and retest lower.
Should the price make a return down to the crucial area of demand, $0.02320 down to $0.021000, then long opportunities will be scoped. Once TRX/USD trades back within the region, look for signs of stabilization. A buy could be taken within the zone, with the scope a couple of upside targets in mind. $0.030000-0.0320000, supply area and current month high. Further north, a second target could be $0.035000-0.036000, retesting 2019 high. Stops for the long positions would be placed just below the noted area of demand, allowing enough breathing room at $0.020000.
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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