Tron has continued its downward pressure this week falling another 13.30% over the past 7 trading days. Tron is currently trading hands at a price of $0.033, at the time of writing and has enjoyed a brief bull run over the past 24 hours as price action increases by 1.38%.
Tron was created by Justin Sun, Forbes Asia 30 under 30 most influential entrepreneurs and former Ripple coin representative. IT was intended to become a media content sharing platform where content creators can create their own content and retain ownership to their work.
Tronix has recently undergone a token migration over the past 2 weeks where all ERC-20 TRX coins are converted to official Tron mainnet coins.
Tron is currently ranked at 11th place, falling out of the top 10, with a total market cap value of $2.23 billion. THis is $1.06 billion less than the market cap high seen last month.
Let us continue to analyse price action for TRX.
TRX/USD – SHORT TERM – DAILY CHART
Analysing the market from the long term perspective above, we can see that the market had experienced a major bullish run during April as price action rose from a low of $0.028 and extended all the way up to a high of close to $0.100. This was a price increase of 260% from low to high.
After placing this all time high, price action went on to fall, originally finding support at the .5 Fibonacci Retracement priced at $0.0645. This is a Fibonacci Retracement taken from the bullish run highlighted above.
During June, price action collapsed below the .50 Fibonacci Retracement until it found support at the .618 Fibonacci Retracement priced at $0.056. However, this level failed to hold as the market broke further lower toward the end of June where it found support at the .886 Fibonacci Retracement priced at $0.0369.
The market fell further lower as July began trading. Price action fell below the .886 Fibonacci Retracement to where it is currently trading, at support, at the 1.618 Fibonacci Extension level, priced at $0.0325. This is a Fibonacci Extension taken from the initial bearish leg after the market placed it’s all time high.
If the market find support at the $0.032 level and reverse, the nearest level of resistance comes in at the .886 Fibonacci Retracement priced at $0.036. Resistance following this level is located at the .618 Fibonacci Retracement level priced at $0.056.
Alternatively, if the bearish pressure continues and pushes the market further lower then near term support can be expected to be found at April’s lows priced at $0.0287 (highlighted by the grey horizontal line).
The technical indicators are largely favouring the bears at this current moment in time. The RSI is trading below the 50 handle and has been trading here for the past two months. If we are to expect to see the bearish pressure to subside within the market we will need the RSI to move from oversold conditions at 20 and make its way to break above the 50 handle. A break above the 50 handle would indicate that the bullish momentum is beginning to build within the market.