Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice
Tron (TRX) has been on a long-term downtrend since declining from the $0.129-mark. Nevertheless, the bulls managed to find their grounds over the last month. The alt saw a close above the vital 38.2% Fibonacci resistance over the last day.
After firmly retesting the upper band of the Bollinger Bands (BB), TRX could set itself up for a drop towards the $0.062-$0.063 range before continuing its up-rally. At press time, TRX traded at $0.06393, up by 1.27% in the last 24 hours.
TRX 4-hour Chart
Source: TradingView, TRX/USDT
Since its November highs, TRX substantially depreciated (over 60%) and plunged towards its six-month low on 24 January. Since then, the bulls took charge of the troughs, as evidenced by its trendline support (yellow, dashed).
It registered nearly 40% gains to retest the 61.8% Fibonacci resistance on 10 February. Since testing the golden level, TRX took a downturn while the 23.6% level and the trendline offered support. Over the past day, bulls found a close above the critical 38.2% resistance whilst the 20 EMA (red) and 50 EMA (cyan) crossed the 200 EMA (green). Thus, revealing a golden cross on its 4-hour chart.
Owing to the recent golden cross and the sturdiness of its immediate support, TRX would likely continue its uptrend and aim to overturn the $0.064-level. But before that, the alt could likely face a short-term setback towards 20 EMA as the price was still on the ‘expensive’ side of the Bollinger Bands.
Rationale
Source: TradingView, TRX/USDT
The RSI was into the overbought region as the bulls were on the driving seat. A fall from its trendline resistance would affirm a bearish divergence with price and cause a near-term pullback.
Similarly, the CMF was way above the zero-line and revealed a one-sided bullish momentum. A reversal from its resistance would confirm a potential bearish divergence with price.
Conclusion
Considering the overbought readings on the RSI and BB, a near-term setback towards the 20 EMA could be likely before TRX continued its uptrend. A strong close above its immediate resistance could open up recovery gates towards the $0.66-zone.
Moreover, the investors/traders should consider Bitcoin’s movement and its impact on broader market perception to make a profitable move.
Source: https://ambcrypto.com/this-new-entry-trigger-in-tron-can-prove-to-be-quite-profitable/