HomeAltcoin NewsTron (TRX) Price Analysis: Down 12%, Approaching Key Support

Tron (TRX) Price Analysis: Down 12%, Approaching Key Support

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  • Tron price failed to gain momentum above $0.0300 and declined recently against the US Dollar.
  • TRX price traded below many supports, including $0.0285, $0.0280 and $0.0265.
  • Earlier, there was a break above a key bearish trend line with resistance near $0.0280 on the 4-hours chart (data feed via Bitfinex).
  • The price is now approaching a crucial support area near $0.0240, where the bulls might emerge.

TRON price is currently trading south against the US Dollar and bitcoin. TRX price is likely to test the $0.0240 support area before it could start a fresh increase.

Tron Price Analysis

After a major drop, TRON price found support near the $0.0200 level against the US Dollar. The TRX/USD pair traded as low as $0.0205 and started a fresh increase. The pair gained traction after it broke the key $0.0220 and $0.0232 resistance levels. Moreover, there was a clear break above the $0.0240 resistance level. There was even a close above the $0.0240 level and the 55 simple moving average (4-hours).

Additionally, there was a break above a key bearish trend line with resistance near $0.0280 on the 4-hours chart. Finally, there was a spike above the $0.0300 level before the bulls lost control. A swing high was formed near $0.0305 and the price recently started a strong decline. It broke the $0.0280 support and the 55 simple moving average (4-hours).

There was a break below the 50% Fibonacci retracement level of the upward move from the $0.0205 low to $0.0305 high. However, the price is now approaching a crucial support area near the $0.0240 and $0.0239 levels. Moreover, the 61.8% Fibonacci retracement level of the upward move from the $0.0205 low to $0.0305 high might also act as a support near $0.0243.

If the price fails to stay above the $0.0240 support, it could continue to move down. The next important support is near the $0.0220 level. Conversely, if the price holds the $0.0240 support, it could bounce back. An initial resistance is near the $0.0270 level. However, the main resistance is near $0.0280, above which the price could accelerate higher.

Tron Price Analysis TRX Chart

The chart indicates that TRX price is clearly under a lot of pressure below the $0.0270 and $0.0260 levels. Having said that, the $0.0240 support level is likely to act as a strong buy zone. In the short term, there could be range moves above $0.0240 before the price either starts a fresh increase or declines further to $0.0220.

Technical Indicators

4 hours MACD – The MACD for TRX/USD is gaining pace in the bearish zone.

4 hours RSI – The RSI for TRX/USD is currently well below the 50 level and is moving lower towards 30.

Key Support Levels – $0.0240 and $0.0220.

Key Resistance Levels – $0.0270, $0.0280 and $0.0300.

Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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