Tron Price Analysis: TRX/USD Bulls Run Out of Steam for Now, Bears to Test Vital Trend Line of Support
- TRX/USD is running at its second consecutive session in the red after the bulls lost upside momentum on 27th
- A bearish evening star candlestick was produced, which indicated selling pressure to the downside was looming.
Tron Recent Price Behavior
The TRX/USD bulls have lost their upside momentum after enjoying a decent run higher from 21st – 27th January. At the time of writing, the bears were still in control of the price, a spill over from the big hit that was taken yesterday. It was forced to drop as much as 14.5% amid large losses which could be observed across the cryptocurrency market. On 27th January, this marked the last most recent close in the green, however a worrying daily candlestick was produced.
Further on the above, it isn’t too surprising that heavy selling was followed after the mentioned candlestick. This can be viewed as an evening star formation, which does typically come back a sell-off, playing by the technical textbook. The bearish candle also coincides with TRX/USD failing to breakdown a stubborn area of supply. In terms of its markings, this can be seen running from $0.026000 up to $0.031500.
In comparison to most of TRX peers, where several cryptocurrencies have traded within very mundane ranges, TRX has not to that extreme. Tight range blocks can be observed across the board, however the TRX/USD bulls continue to drive higher. The buyers have maintained most firm control since the change in trend, which was seen mid-December. Despite a few minor bearish pullbacks, the bulls have hit back even harder, with their pressing to the north.
Aside from the technical aspect, the Tron foundation have continued to keep busy. Justin Sun is constantly making an effort to keep TRX at the forefront of the crypto community’s minds. He has been maintaining a high activity of news flow via Twitter. Many were initially very excited by the BTT airdrops for TRX holders, which may have contributed in the pumping higher. If investors want to partake in BitTorrent’s BTT tokens, then they must have Binance Coin (BNB) or TRX.
Keeping in mind the recent change in momentum, now pointing to the downside, eyes must be on the key areas of support. Immediate comfort can be observed just below the current price, a running ascending trend line. This is currently tracking around $0.024500, just outside of the earlier detailed supply area. The line of support has been in play since 21st December, having supported the price on each occasion they have come into contact. At the back-end of December and throughout January, this has provided the needed cushion to prevent a free-fall south.
In order for a greater wave of buying pressure and a large pick up in momentum, the bulls must breakdown the stubborn areas of supply. These are currently preventing TRX/USD from conquering the $0.030000 territory. Once this has been achieved, then there isn’t much in the way of major resistance until the $0.040000 price region. The price has not traded up in these heights since 30th July 2018, where hard selling hit the entire market.
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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