Tron has seen a sharp 7.42% price declin over the past 24 hours of trading. This comes as a result of BTC taking a tumble under $7,000 once again. Tron is currently exchanging hands at a price of $0.0235 after seeing a 10% price decline over the past 7 trading days.
The news has been great for Tron after the release of the Tron Virtual Machine last week and the announcement of uTorrent Web today, however, these markets are still largely Bitcoin driven so when BTC falls so does the dollar value of the rest of the Altcoins.
Tron has also recently been added to the Abra Wallet which gives customers within Europe the opportunity to transfer fiat from European bank accounts directly to the Abra Wallet to make cryptocurrency purchases. This will greatly reduce the barriers to entry for users within Europe who are interested in investing in Tron.
Tron is currently ranked in 13th position in terms of overall market cap across the entire industry. It has a total market cap value of $1.55 billion after suffering a 59% price decline over the past 90 trading days.
Let us continue to analyse the 12 month old coin over the short term.
TRX/USD – SHORT TERM – DAILY CHART
Analysing price action from the short term perspective above, we can see that the resistance highlighted in our last article at the 1.272 Fibonacci Extension level, priced at $0.026860 had proved significant as the market was not able to break above this level.
The market has since rolled over and broken below both support levels identified by February 2018’s price low of $0.02510 and March 2018’s price low of $0.023. If the bearish pressure continues within the BTC/USD markets we can continue to expect this TRX/USD market to drop even further lower.
From a medium termed perspective, if the bearish pressure continues we can expect the nearest level of significant support to be located at the psychological round number handle of $0.020 followed by the downside 1.272 FIbonacci Extension level (drawn in green) priced at $0.018.
Further support expected below $0.018 can be expected at the downside 1.414 Fibonacci Extension level priced at $0.016. This area of support is also bolstered by a longer termed 1.272 Fibonacci Extension level priced in the same area.
The technical indicators within the market have now started to swing towards the favour of the bears. The RSI has recently penetrated below the 50 handle and looks to head further lower near oversold conditions. If the RSI continues to remain underneath the 50 handle we have to assume that the bearish momentum is in control within the market. If we would like to see the previous bullish rally to continue we would need to see the RSI break back above the 50 handle.
Similarly, the moving averages have started to show some signs that could favour the bears as they position themselves for a bearish crossover signal. If the 7 day EMA (blue moving average) crosses back below the 21 day EMA (purple moving average) this will signal a bearish crossover signal indicating that the bearish pressure is mounting within the market.