Tron (TRX) Outperforms Bitcoin, But Here’s Why It Could Correct Lower

Aayush Jindal

4 years ago

2 mins read

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Tron price is up over 5%, while bitcoin is down over 5% against the US Dollar. TRX is currently testing a crucial resistance near $0.0385 and it could correct lower in the short-term.

Tron price is trading in a positive zone well above the $0.0320 pivot level against the US dollar.
The price traded to a new weekly high at $0.0386 and it is currently consolidating gains.
There is a key connecting bullish trend line forming with support near $0.0350 on the 4-hours chart of the TRX/USD pair (data source from Kraken).
The pair is likely to correct lower, but the bulls are likely to defend $0.0350 or $0.0320.

Tron Price Jumps 5%

In the past few sessions, tron price followed a bullish path above the $0.0300 level against the US Dollar, and it outperformed bitcoin and ethereum. TRX even broke the $0.0350 resistance zone and settled well above the 100 simple moving average (4-hours).

The price traded to a new weekly high at $0.0386 and it is currently consolidating gains. An initial support is near the $0.0370 level. It is close to the 23.6% Fib retracement level of the recent rally from the $0.0316 low to $0.0386 high.

The first major support on the downside is near the $0.0350 level (the breakout zone). There is also a key connecting bullish trend line forming with support near $0.0350 on the 4-hours chart of the TRX/USD pair.

Tron (TRX) price breaks $0.0350. Source: TradingView.com

The trend line coincides with the 50% Fib retracement level of the recent rally from the $0.0316 low to $0.0386 high. On the upside, tron is facing a major hurdle near the $0.0385 zone. If the bulls successfully clears the $0.0385 resistance, the price could rally again.

The next major resistance is near the $0.0400 level, above which the bulls are likely to aim a larger increase towards the key $0.0500 zone in the coming days.

Dips Likely to be Limited in TRX

If TRX price fails to clear the $0.0385 barrier, it could correct lower. An initial support is near the $0.0350 zone, where the bulls are likely to appear.

It seems like dips are likely to remain supported, but any losses below $0.0350 could lead the price towards the $0.0320 support zone in the near term.

Technical Indicators

4-hours MACD – The MACD for TRX/USD is gaining momentum in the bullish zone.

4-hours RSI (Relative Strength Index) – The RSI for TRX/USD is currently well in the overbought zone.

Major Support Levels – $0.0370, $0.0350 and $0.0320.

Major Resistance Levels – $0.0385, $0.0400 and $0.0420.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.

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