The TRON price is sluggish and continues to do business below $0.1000, despite Bitcoin surging to within a whisker of its all-time high. TRON (TRX) is trading at $0.0991 (+1.14%), up 6% in October, and 260% year-to-date. TRON currently has a market capitalization of $7.06 Billion, raking it the 28th-most valuable cryptocurrency, ahead of Ethereum Classic.
This morning, Bitcoin is trading at a six-month high of $62,800, which has lifted the combined value of crypto assets above $2.5 trillion, equalling May’s peak. However, BTC’s outperformance has increased its market dominance to 47%, pulling capital and liquidity from altcoins. As a result, the TRON price has flatlined this month and remains glued to the 50, and 200-day moving averages. Furthermore, a long term symmetrical triangle formation reinforces the neutral price action.
The daily chart shows TRX is grinding sideways, just above the 50-day moving average (DMA) at $0.0975 and the 200-day at $0.0984. The 100-DMA offers additional price support at $0.0848. Below that, a rising trend line from February at $0.068 underpins this year’s bull market. A descending trendline from the April high offers resistance at $0.1132 and combines with the rising trend to form a symmetrical triangle pattern.
Until the TRON price breaks free from the triangle formation, the outlook is neutral. The Moving Average Convergence Divergence Indicator (MACD) and the Relative Strength Index both support this view. However, the price is above the longer-term moving averages, which is constructive. Furthermore, as long as TRX respects the rising trend line, this years bull market is intact. On balance, I remain optimistic longer term. However, an immediate trading signal is not forthcoming, and for that reason, the immediate outlook is neutral.
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This post was last modified on Oct 19, 2021, 04:53 BST 04:53