Tron Price Analysis: A Breakout Could Be Very Near as Price Action Narrows
- Tron has been stuck within a stubborn range for the past 6 weeks, which continues to narrow.
- Recent price behavior suggests there could be an imminent breakout for TRX/USD.
The Tron price has stabilized somewhat from the consistent and steep bearish trend that it was stuck within from the start of May. Over the past four months it has dropped just shy of 80%. Despite this doom and gloom, there could very much be some light at the end of the dark tunnel, of which the price has travelled within.
In terms of news flow and developments around Tron, there is still much excitement surrounding the foundation. Starting off most recently, Justin Sun tweeted “Friday (Sep. 28) at 7 PM San Francisco time! On the agenda: update on our latest progress, exclusive info about #ProjectAtlas, dApps presentation and more exciting projects we are working on. Name a #TRON dApp you would like to see during the live! $TRX”.
Project Atlas is Tron’s integration plans with BitTorrent. This follows Tron acquiring BitTorrent back in July, which was for an undisclosed sum. The vision is to create a hybrid content sharing ecosystem that will use TRX tokens as the currency on the platform. Users will be able to create incentives with the use of TRX tokens, to obtain benefits such as faster speeds with downloads. Users who continue to seed the torrent files after the completed downloads are also able to earn tokens as a reward.
Looking at the technical breakdown for Tron, over the longer time frame via the daily chart, the price has been heavily dictated by a long-running descending trend line. TRX/USD has respected this to the downside since 1st May, each time coming into contact and being sent further south. Since mid-August, there has been some stabilization and price action has narrowed, again testing the trend line, looking subject to a potential breakout. A pennant formation can also be eyed, as a result of the sideways trading. The trend should become clearer once a breach has been made.
Resistance can be seen at the range of 0.023050 – 0.025000, this would be the initial above-mentioned descending trend line. A breach should then see a test of the latter part of this range, which would be the upper part of the eyed pennant pattern. Further north, the 100DMA can be see floating at 0.288450, the price has not been in contact with this since it slipped below on 10th June.
Support is eyed 0.019625 – this is where the lower trend line of the pennant is tracking, having seen this support the price on 12th and 17-18th September. Should this fail to hold, the low print on 14th August, where the price produced a reversal hammer candlestick, will be eyed at 0.015667. If bearish momentum is strong enough and breaks through these vital key areas, it could spiral into a free-fall.
Featured image courtesy of Shutterstock.