Home Analysis Alt Coins TRON (TRX) Price Prediction – Tron Slides 12% as Crypto Markets Collapse

TRON (TRX) Price Prediction – Tron Slides 12% as Crypto Markets Collapse

October 12, 2018 11:46
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Tron has seen a precipitous price decline totalling 12% over the past 24 hours of trading. The cryptocurrency is currently exchanging hands at a price of $0.0221 after seeing a further 13% price decline over the past 7 trading days.

This 12% price drop comes in today the same day that the Tron team were planning on releasing their Tron Virtual Machine (TVM). The TVM will be the backbone for developers to come and code decentralised applications on top of the Tron blockchain. This is very similar to the Ethereum Virtual Machine which allows developers to code decentralised applications through a coding language such as Solidity. The TVM will allow developers to code in a plethora of languages further reducing the barriers to entry to code on the TVM.

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Tron is currently ranked in 11th position in terms of overall market cap across the entire industry. It currently has a total market cap value of $1.46 billion after suffering. 32% price decline over the past 90 trading days. Tron is still trading at a price that is 91% lower than its all time high value.

Let us continue to analyse price action for Tron over the short term and highlight any potential support and resistance zones.

 

Price Analysis

 

TRX/USD – SHORT TERM – DAILY CHART

https://www.tradingview.com/x/GOcmSyhK/

 

Analysing the market from the short term perspective above, we can see that Tron had recently come into strong resistance, provided by the April 2018 price low at $0.0281, where the market rolled over and retraced from.

We can see that the market had experienced a bullish run when price action started from a low of $0.016 on August 14th 2018 and extended to a high of $0.0282 on October 2nd 2018. This was a price increase totalling 74% from low to high.

The recent price decline has brought price action into a support level lower provided by the short term .5 Fibonacci Retracement level (drawn in green) priced at $0.02211. If the bears can constitute to pressure price action lower, we can expect immediate significant support below to be located at the .618 Fibonacci Retracement level priced at $0.0206. Further support below this can be expected at the .786 Fibonacci Retracement level priced at $0.018636.

If the bears can continue to pressure the market even further lower then more resistance below can be located at the short term downside 1.272 FIbonacci Extension level (drawn in red) priced at $0.01628 followed by the downside 1.414 Fibonacci Extension level priced at $0.014976.

Alternatively, if the bulls can regroup from the support at $0.0221 and push price action higher, we can expect immediate resistance above to be located at the .382 Fibonacci Retracement level priced at $0.023 followed by the .236 Fibonacci Retracement level priced at $0.025. If the bulls can persist further higher then more significant resistance above can be expected at the April 2018 price low at $0.02813. It is important to highlight that this area of resistance is significantly bolstered by the 100 day moving average which is also floating within the same price level, further adding to the expected resistance here.

The technical indicators within the market have recently swung into favouring the bears at this current moment in time. The RSI has recently dipped underneath the 50 handle which indicates that the bears are in control of the momentum within the market. IF we would like to see the market make some gains, we would need to see the RSI breaking back above the 50 handle.

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