The Tron Price Action Exhibits Bearish Deformity; What’s Next?

Tron is a platform that strives to utilize the TRON protocol in the best possible aspects. It is also a blockchain operating system that delivers high performance, adaptability, and reliability to all DApps in the TRON ecosystem.

The platform’s native cryptocurrency, TRX, was availed as an ERC-20 token. It implies that it was based on the Ethereum blockchain and followed the ERC-20 standard until Tron created its blockchain.

Additionally, the Tron allows smart contracts and has many DApps following its network. Its DeFi ecosystem has locked billions of value.

Moreover, the major utilization of the TRX token is to pay transaction fees on the Tron blockchain. TRX holders can boost their income by staking tokens with a Super Representative on the network, which needs freezing their tokens.

The Tron network became decentralized in December 2021 and has since become a community-driven project through its DAO.

TRX holders vote on-chain for a choice of Super Representatives and can actively engage in the community to support the project.

Tron’s DeFi ecosystem offers TRX token holders various financial services on the blockchain.

Technical Evaluation of Tron Price on the Daily Timeframe

The TRON crypto has been in an uptrend from the start of the year. However, the TRX crypto has displayed a sign of decline as the price fell from a critical level of around $0.110000 on the charts.

The TRX crypto is set for a dismal plunge, as it fails to break the resistance level and it strives to sink more for the new lows.

The Tron Price Action Exhibits Bearish Deformity; What’s Next?
Source: TRX/USD: BITFINEX.1.D. by TradingView

The TRX crypto is barely managing to stay above the trendline, but buyers seem to be on fumes. As the TRX asset is showing bearish weakness and falling potential as it drops below major 20-day and 50-day EMAs, could continue to decline more contingent on sellers.

The technical oscillators are exhibiting that the TRX asset is in a strong downtrend, the RSI shows no signs of oversold conditions, and the MACD shows a bearish cross, suggesting that the asset has more room to fall.

Furthermore, in the past price structure, it is observed that the TRX asset is showing bearish traits and can lose more value. It has demonstrated poor performance in the past week, and one month, by 4.08% and 2.99%, indicating a reliable downward trend.

The TRON Crypto 24-hour trading volume is 227.375 Million with a market capitalization of 9.13 billion. At the time of publishing, the TRX is trading with a slight upsurge of 0.54% with a CMP of $0.1033.

The Tron Price Action Exhibits Bearish Deformity; What’s Next?
Source: TRX/USD: BITFINEX.1.D. by TradingView

If the TRX price breaks the current trendline and drops from the current level, it could go up to $0.0991.On the flip side, if TRON crypto rises and buyers surge with the sustainable momentum, its price could go up to $0.1100.

Summary

The TRX crypto is barely managing to stay above the trendline, but buyers seem to be on fumes. As the TRX asset is showing bearish weakness and falling potential as it drops below major 20-day and 50-day EMAs, it could continue to decline more contingent on sellers.

Therefore, if the TRX price breaks the current trendline and drops from the current level, it could go up to $0.0991.

Technical Levels

Support Levels: $0.0991

Resistance Levels: $0.1100

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.

Source: https://www.thecoinrepublic.com/2024/01/08/the-tron-price-action-exhibits-bearish-deformity-whats-next/