The Tron market had taken a serious price fall yesterday totalling up to 10% which had brought pice action down to around $0.02433, at the time of writing. However, the bulls will take comfort in knowing that despite the recent price drop, Tron is still up by a total of 100% over the past 90 trading days.
Tron is currently ranked in 9th position as it presently holds a $1.60 billion market cap valuation.
Let us take a look at price action and highlight some potential areas of support and resistance moving forward.
TRX/USD – DAILY CHART – MEDIUM TERM
Taking a look at the daily TRX/USD chart above, we can see that price action has been relatively stable this month as the market has traded in a range between $0.028 and $0.024. We can also see that TRX/USD has now found support at the 100 day moving average and has managed to remain above it which indicates that the bulls still have a foot in the market.
The current trend remains neutral until the market breaks out of the previous aforementioned range. If price action breaks above $0.028 then the market can be considered bullish again. However, if it falls below $0.024 (and the 100 day moving average) it will be considered bearish.
Looking ahead, if the sellers do manage to push price action beneath the current support level, immediate support below can be expected at the short term .886 Fibonacci Retracement level (drawn in blue) priced at $0.02317.
If the bearish momentum continues to drive TRX/USD even further lower we can then expect more support to be located at the .618 Fibonacci Retracement level (drawn in green) priced at $0.021228. This is followed with more support at the medium termed downside 1.414 and 1.618 Fibonacci Extension levels (drawn in purple) priced at $0.0205 and $0.01901, respectively.
Alternatively, if the bulls can regroup and start to drive price action higher we can expect immediate resistance above to be located at the February 2018 low priced at $0.025. Further resistance above this can then be located at the .382 Fibonacci Retracement level (drawn in green) priced at $0.02681 followed by higher resistance at the $0.02855 level.
The RSI has recently broken beneath the 50 handle as the bears take control of the market momentum. However, the RSI is facing upward which may indicate that the bulls are ready to ramp up the pressure once again if they can break above the 50 level.
