Tron Price Analysis: TRX Facing a Huge Technical Test of Key Support

  • TRX/USD is testing a vital long-running ascending trend line of support.
  • TRX/BTC was dealt another rejection blow and is also set to meet a key support area.

The Tron price has been cooling the last couple of sessions, looking at both TRX/USD and TRX/BTC. It has failed to break down and move past a tricky area of supply, which can be observed from around $0.02500 heading into the $0.03000 region. TRX/USD has been trying to move within this range as if it would through glue. It has proven to be a tough and slow process, with the bulls not having enough upside momentum to clear. The price has not traded firmly above this area since the very start of August 2018.

TRX/USD: Vital Ascending Trend Line Support

TRX/USD daily chart.

The price has been supported in its move north by a long-running ascending trend lin in play since 20th December 2018. On several occasions, the price required the comfort of this support, having touched the trend line in December, January and February. This proved the significance of its strength in preventing a free-fall to the south. It is really the protector for the run of gains accumulated from December to February. TRX/USD has managed to recover well-over 50%, thanks to the additional guidance of the trend line.

Next Support Area

Should the bears manage to force a breach of the above-mentioned trend line, then it could open another wave of selling pressure. The run of gains kick-started mid-December will be at risk of a full-reversal. There isn’t too much in the way of support until sub-$0.02000 mark. Eyes will initially be on the $0.01800 territory; the price last consolidated here at the back-end of December. This was seen before TRX/USD stormed further higher. A demand zone can also be observed running from $0.01800 down to $0.01600.

TRX/BTC: Bulls Defeated Again

TRX/BTC daily chart.

The price is currently running at its third consecutive session in the red for TRX/BTC. A resumption of selling pressure picked up after another rejection at a stubborn supply area. This should be noted running from 0.00000800, up to 0.00000860. The price has been hit with sellers hard on three occasions already this year. In terms of the rejections, these have been observed on 10th January, 27th January and 4th February. Since the most recent knock-back, TRX/USD has dropped as much as 16%.

Next Support Area

Given the current downside momentum observed, eyes must now focus on the next key areas of support. For TRX/BTC, the support is currently tracking at 0.000000650, where the price could see a bounce from this pressure lower. Further south, eyes would be on 0.000000500, as TRX/BTC had consolidated here from 24th December 2018 to 3rd January 2019. This was seen before the price further resumed its strong move higher.

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.