TRON (TRX) Turns Around From Current Level, a Breakout Likely

TRON (TRX) Turns Around From Current Level, a Breakout Likely

Key Resistance levels: $0.025, $0.030, $0.035
Key Support Levels: $0.015, $0.010, $0.005

TRX/USD Long-term Trend: Bearish
TRON is in a bear market. The coin fell in a bear market to a low of $0.020 and made an upward correction to the high of $0.030 in July. After the price correction, the coin dropped to a low of $0.012 in September. At the bottom of the chart, the price has been rebounding but faces rejection at $0.020 price level.

Meanwhile, the $0.012 support had been holding since September. The coin will rise if the current support holds, however, TRON lacks demand at a higher price level. The coin will fall if selling pressure resumes and breaks below the $0.012 support level.

TRX/USD - Daily Chart

Daily Chart Indicators Reading:
From the Fibonacci tool, a bull candle body tested the 0.618 retracement level. This implies that TRON will trade and fall near the 1.618 extension level. This is equivalent to a $0.007 price level. Meanwhile, from the price action, the market is consolidating above $0.012, preparatory to the next move.

The Relative Strength Index period 14 level 47 indicates that the market is fluctuating at the bottom of the chart. Meanwhile, 21-day SMA and the 50-day SMA are sloping horizontally indicating the price movement.

TRX/USD Medium-term bias: Bearish
On the 4-hour chart, TRON is trading above the $0.013 support. On December 17, the coin traded and fell to the low of $0.12, and resumed an upward movement. The upward movement was terminated at $0.015 while the coin fell to the current low. The market seems to have bearish exhaustion at $0.012 while the bulls defend the support level. The coin is also facing rejection at the upper price level because of a lack of demand.

TRX/USD - 4 Hour Chart

4-hour Chart Indicators Reading
The coin was trading in a descending channel. The bears broke the support line as the coin fell to the low of $0.012. Thereafter, the support was well defended as the bulls make an upward movement to the recent highs. The market is trading below 75% of the daily stochastic which indicates that the coin is in a bearish momentum.

General Outlook for TRON (TRX)
TRON is consolidating at the bottom of the chart. From the Fibonacci tool, it indicates that if selling pressure resumes the coin will fall to the low of 1.618 extension level or $0.007. From the price action, selling pressure will resume once the $0.012 support cracks. This will confirm the Fibonacci tool estimation of price fall. In the meantime, the pair is in a period of consolidation.

TRON Trade Signal
Instrument: TRXUSD
Order: Buy
Entry price: $0.013
Stop: $0.011
Target: $0.020

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.