Triangle Pattern Governs the TRX Price Action; Should Coin Holders Worry?

TRON1

Published 18 hours ago

For more than a year, the Tron (TRX) price bounded within a descending trendline pattern. Furthermore, on June 15th, the coin price rebounded from the $0.5 neckline and triggered a new bull cycle. The recovery rally aims for a 24% rise before hitting the descending trendline.

Key points

  • The TRX buyers are trying to rise above the $0.065 resistance 
  • The TRX chart shows a bearish crossover of the 20-and-50-weekly EMAs
  • The 24-hour trading volume in the TRON coin is $793.6 Million, indicating a 10.15% hike.

TRX/USDT ChartSource-Tradingview

Since the TRX/USDT pair reverted from the $0.18 high in April 2021, the price action has been wavering within a descending triangle pattern. The coin price has thrice tested the descending resistance trendline and $0.05 neckline support, indicating the traders respect the pattern’s levels.

Amid the second and third-week sell-off, the TRX price gave its third retest to the $0.05 mark and bounced back immediately as the market sentiment started to ease. The current bulls cycle initiated from the mentioned support propelled the altcoin 48.63% higher to its current level of $0.0694.

The sustained buying should allow the TRX price to surpass the $0.073 mark and retest the dynamic resistance trendline. A possible trendline reversal would encourage the resumption of the consolidation phase within the pattern.

Furthermore, the descending triangle pattern is a bearish continuation pattern and could threaten a $0.05 support breakdown to continue the prevailing downtrend.

Technical indicator

EMAS: The 20-and-50-weekly EMA’s wobbling around the $0.075 resistance puts additional selling pressure on TRX traders and could stall the upward rally to the resistance trendline.

RSI indicator: However, the daily-RSI slope shows a bullish divergence concerning the last two retests to $0.05. This divergence may indicate the pattern holds the possibility of trendline breakout.

  • Resistance level- $0.075 and $0.088
  • Support levels- $0.058 and $0.05

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

Close Story

Source: https://coingape.com/markets/tron-price-analysis-triangle-pattern-governs-the-trx-price-action-should-coin-holders-worry/