Tron: Gauging TRX’s potential to offer any near-term buying opportunities
Disclaimer: The results of the following analysis are the sole opinion of the writer and should not be considered investment advice.
For nearly two months, Tron [TRX] took a turn by keeping its swing in the $ 0.0709-$ 0.063 range. The recent reversal from its ceiling has given sellers just enough push to bring the coin below its 200 (green) EMA.
A reversal could be plausible if the bulls repeat their empirical bias to bounce off the $ 0.06 zone. A jump above the current model could favor the possibility of a short-term comeback before a probable withdrawal. At press time, TRX was trading at $ 0.06553.
TRX 4-hour chart
TRX saw an expected reversal after bouncing off the $ 0.063 baseline. Its previous revival set a solid foundation for testing the $ 0.07 ceiling multiple times.
The 200 EMA (green) supported the altcoin lows until recently. The bears inflicted a large increase in sales volumes to cause a sharp decline as they marked a falling wedge structure.
With a 20 EMA (red) and a 50 EMA (cyan) falling below the 200 EMA, sellers would be keen to maintain their short-term advantage on the chart. The broader trend seemed to be leaning towards sellers.
But for nearly two months, the halt showed tendencies to bounce back from its immediate support. Will TRX Repeat History?
If so, a break above the (white) trendline resistance could push growth towards the $ 0.066 -0.067 range. The inability to break the shackles of the current model could prolong the slow phase in the next sessions.
The Relative Strength Index (RSI) leapt above the oversold level, while projecting an easing of selling pressure. Buyers should look for potential growth above the 41 threshold before taking a long position.
Additionally, the southbound Moving Average Convergence Divergence (MACD) lines hit a two-month low, while still representing a strong bearish margin. A bullish crossover of these lines could reaffirm the chances of a gradual increase in purchasing power.
Past trends of the coin to rebound from the immediate support level along with the oversold readings on the indicators could inflict a reversal. But the death cross on the EMAs would likely limit buying efforts. The objectives would remain the same as above.
However, investors / traders should consider Bitcoin’s movement and its impact on the broader perception of the market to make a profitable move.