- Summary:
- A double-bottom on the chart suggests that the Tron price may finally be ready to break out of its recent downtrend. TRX could rally 30% if this happens.
A double-bottom on the chart suggests that the Tron price may finally be ready to break out of its recent downtrend. TRX could rally 40% if this happens.
TRX seems to have found a floor price for the moment. The sell-off on the 19th of May saw the Tron price trade as low as 0.0566. having lost 52% from its intraday high of $0.1183.
In the relief rally that followed, TRX managed to bounce +60% before stalling at $0.0940. The Tron price, like much of the market, was unable to hold onto the gains, bleeding lower over the next three sessions.
On the 23rd, TRX marginally exceeded the low of the 19th, trading as low as $0.05850 before staging another strong recovery.
This morning, TRX is trading at $0.0834 and attempting to clear an ascending trend line from the 7th of May high at $0.1701. There are some encouraging signs that this may happen sooner rather than later.
Towards both lows, the trading volume was much higher than normal. The volume has continued to be strong, suggesting there is accumulation happening at this lower valuation.
This is further reinforced by the second 50%+ bounce from the $0.0550 area.
There is still a lot of work ahead of TRX. The price remains -50% from the highs earlier this month. Whist that may take some time, the bulls will be encouraged by the recent price action.
Tron Price Outlook
The 4-hour chart shows that the recovery from the second dip has formed a double-bottom. This is considered a bullish formation. The resulting rally has taken the price to the resistance of the ascending trend line from the May High.
This trend is currently capping the Tron price at $0.8325. During the last 24 hours, the price has been trading close to the line. However, it is yet to punch through.
If the TRX trades higher through the trend, I expect to see momentum buying take the price higher still. The rally from the May 19th low fell short at the 0.618% Fibonacci retracement level at $0.9090. I would consider this the first target on a breakout to the upside.
On a continuation of the bullish move, the price has the potential to extend to $0.1180, around 40% higher than the current level.
However, if the momentum fails to breach the trend, we are likely to reverse lower. In this instance, I would expect to see support around yesterday’s low of $0.7120.
I maintain a bullish bias on the Tron price. However, I would prefer to wait for the price to break higher to confirm the thesis. A move below the previous support area at $0.0550 would negate the bullish outlook.
TRX 4-Hour Chart
Follow Elliott on Twitter.