The Tron price is in a tight range as investors wait for the next catalyst. The TRX is trading at $0.0642, which is about 37% above the lowest level in June. The coin has a market capitalization of more than $4.5 billion and is the 25th biggest cryptocurrency in the world.
What happened. Tron’s price has been highly correlated to that of Bitcoin and other cryptocurrencies. For example, as Bitcoin declined below $30,000 in June, Tron fell to $0.0462. Also, while Bitcoin found a substantial resistance at $39,000, Tron found it difficult to move above $0.7465. Indeed, other leading cryptocurrencies have exhibited a similar pattern in the past few weeks.
This price action is mostly because of the overall fear of regulations in Western countries like the US and UK as the number of ransomware attacks have increased. Similarly, investors have become concerned about the crypto crackdown in China and the likelihood of high-interest rates in the US. Also, the price has struggled because of the overall weakness in demand.
The four-hour chart shows that the TRX price has been in a tight range recently. It has declined by about 9% from the highest point this year. Further, the pair is along the 25-day and 50-day exponential moving averages. A closer look shows that it has also formed an inverse head and shoulders pattern. It is also slightly below the 23.6% Fibonacci retracement level.
Therefore, the pair will likely break out higher in the near term. If this breakout happens, the next key resistance level to watch will be the 23.6% retracement level at $0.078. On the flip side, a drop below the support at $0.05 will invalidate this prediction.
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