Tron Price Analysis: TRX/USD Vulnerable to Downside Risks; Completing a Breakout and Retest of Key Support

  • Tron price on Friday is trading in negative territory, running towards its fourth consecutive session in the red. It is also heading to its third weekly closure with losses.
  • TRX/USD has seen a daily breakout and retest of a key ascending trend line. Given this technical move, vulnerabilities point to the downside.

TRX/USD: Recent Price Behavior

The Tron price remains very much subdued in terms of its movements, with TRX/USD running towards its third consecutive session in the red. In terms of the weekly view, this could potentially be its third straight week closing with losses. The chunky selling pressure all came into play at quite some intensity following a break below key support. TRX/USD was initially supported by a long-running ascending trend line, which had been in play since the back-end of December. The exposure of this support to the downside has certainly been a game-changer in terms of the trend. It had been within a decent direction to the north, before being hammered by sellers.

On 11th February, the bears manage to force a breach of this noted support, which saw a fresh wave coming into play. The price fell around 10% before managing to find some stable ground at $0.023550, a daily support level. TRX/USD behavior has played to the textbook with the breakout and retest of the trend line. The bulls attempted to push back above this on 24th February; however, they were dealt a significant blow as sellers piled in. TRX had dropped a chunky double-digits, having fallen as much as 16% in that single session.

Technical Review – TRX/USD

TRX/USD daily chart.

In terms of support, immediately eyes will be on the daily level of $0.023550, which has provided necessary comfort on several occasions this side of the year. Should this fail to hold, and the bears force a breach, then eyes will be on $0.021500, another fundamental daily level last in action between 13-14 January. The latter is the last barrier ahead of TRX/USD giving up the $0.020000 price territory. It last traded below this at the very start of 2018 in January. Lastly, $0.018700 and then $0.17000-0.016000 are final areas ahead of a fast potential drop to retest 2018 lows.

To the upside, as detailed earlier, the bulls must break their way back above the breached ascending trend line. A break above will open the door for a return into the $0.03000 territory, TRX/USD last traded here at the back-end of January. Chunky supply can be observed tracking from $0.030000 up to $0.032000. A comfortable push above this zone should make a path for the price to push back into the $0.04000 area. The price last traded up at these heights in July 2018.

TRX/USD weekly chart.

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.

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.