Tron (TRX/USD) Price Analysis: Big Bears Bite After Bulls Fail to Break Above Key Trend Line
- Tron price on Sunday took a beating after the bulls were dealt a significant blow attempting to break back above a key technical area.
- Justin Sun announces a scheduled hard fork for the Tron network; this will take place on 28th February.
TRX/USD: Recent Price Behavior
The Tron price was hit with a fresh bout of selling pressure Sunday after failing to break back above key resistance. The TRX/USD bulls retested the prior strong acting ascending trend line, which had been in play initially from the back-end of December. The market bears forced a devastating breakout to the downside on 11th February, ending the long-running support.
In terms of the retest observed in the session today, the blow from the sellers has been aggressive. At the time of writing, TRX/USD is seen down double-digits, nursing chunky losses of around 12%. The price has fallen to its lowest levels since 21st January. Key areas of support do look set to be tested by the bears.
Tron’s Scheduled Hard Fork
Tron founder and CEO Justin Sun has announced that the Tron network will soon release its 3.5 hard fork upgrade. Four new features will accompany this update, and each will be serving as an upgrade on their blockchain network. The community can expect improvements to multi-signature and account management, dynamic energy adjustment to real-time network performance, 50% performance upgrade from the present level and a superior virtual machine safety and event server for dApps.
He tweeted: “TRON will launch 3.5 hard fork upgrade on 2/28. New Features: 1. multi-sig and acct management, institution ready 2. Dynamic energy adjustment to real-time network performance 3. 50% up performance & res usage 4. Better VM safety, events server for Dapps”.
Sun also detailed requirements from an institutional perspective:
“Multi-sig, acct management and custody are three major requirements for an institution. Recently we have received numerous demands from hedge funds, mainstream investors and financial institution. With 3.5 upgrades and the partnership with BitGo, TRON is ready!”
Technical Review – TRX/USD
As mentioned earlier, TRX/USD attempted to break back above the former acting ascending trend line of support. The rejection was met with some hard-selling pressure to the downside, seen from $0.028000. Price action played out to the textbook with the breakout and then retest ahead of a continued move south.
The current candlestick has breached an essential near-term daily support level seen at $0.023550. Should the bears manage to force closure below this initial comfort, then eyes will be on $0.21500, the low from 13-14 January. Further to the downside; $0.018700 and then an area of demand tracks from $0.017500-0.01600 are the next targets.
In terms of upside, the ascending trend line is the game-changing barrier that bulls must break back above. Otherwise, the sellers will remain in control, capitalizing and selling any short-term rallies. A push north of this can open the opportunity for the bulls to tackle $0.030000, an already worn down somewhat. Finally, a fast return back up to the $0.040000 price territory could take place, only if the mentioned barriers are broken down.
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.