Tron is currently consolidating off its lows around 0.013 and might be prime for a pullback to nearby resistance levels. The Fib retracement tool applied on the latest swing high and low shows that the 61.8% level lines up with the trend line at 0.017.


Meanwhile, the 50% level coincides with an area of interest around the 0.016 level and is also near the 100 SMA dynamic inflection point. The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. In other words, the downtrend is more likely to resume than to reverse. Also, the gap between the moving averages is widening to signal stronger selling pressure.

If any of the Fib levels are able to keep gains in check, Tron could slump back to the swing low or lower. Stochastic has some room to climb, indicating that buyers still have some energy left, but the oscillator is already dipping into the overbought zone to indicate that sellers might take over soon. RSI is already starting to top out and may head south, so Tron could follow suit.

TRX/USD Chart - TradingView

Tron has joined most of its cryptocurrency peers down in the dumps over the past few days as a number of factors are dragging prices down. The selloff was seen to have been triggered by the Bitcoin Cash mining wars then followed by the SEC crackdown on ICOs and decentralized exchanges.

Of course, as FUD set in the markets, more and more positions have been cashed out. Traders might also be easing up ahead of the Thanksgiving holidays which might be prone to volatile moves due to lower liquidity.

Still, there is some risk appetite seen in the financial markets as of late, which is probably why Tron and its buddies are fighting to stay afloat for the time being.


Images courtesy of TradingView

Tags: , ,

Leave a Reply

We use cookies to give you the best online experience. By agreeing you accept the use of cookies in accordance with our cookie policy.