Tron recently broke above its descending trend line to signal that a reversal from the downtrend is about to happen. However, resistance at the .016 mark held and price could be due for a pullback to nearby support levels.
Applying the Fibonacci retracement tool on the latest swing low and high on the 1-hour chart shows that the 61.8% level lines up with the broken trend line. This might now hold as support and push Tron back to the swing high and beyond. Meanwhile, the 38.2% level lines up with an area of interest or former support and resistance level at 0.014.
The 100 SMA is below the longer-term 200 SMA for now, but the gap has narrowed significantly to indicate that a bullish crossover is due. If this materializes, the path of least resistance might be to the upside, which means that the uptrend has a shot at gaining traction.
However, RSI is just turning lower after recently hitting the overbought zone, indicating that selling pressure is in play. Stochastic also just crawled down from the overbought zone to reflect a return in selling momentum as well. A break below the 61.8% Fib and dynamic inflection points at the moving averages could suggest that the downtrend would resume.
There has been a notable improvement in the cryptocurrency industry sentiment these days as reports hinted that institutional investors are still good with placing bets in the industry despite the bear market. These technical breakouts could also be enough to draw buyers in as prices may have already reached a bottom.
In fact, Tron is leading the pack with more than 20% in gains over the past 24 hours. This momentum may also be coming from Justin Sun’s announcement that BitTorrent will be collaborating with various online companies which accept TRX. This could enhance the adoption of Tron in mainstream marketplaces.
Images courtesy of TradingView