The TRON price almost doubled in the four weeks following July’s low. However, it fell short at the elusive $0.10 milestone. And after topping out at $0.9805 on the 16th, TRX has been sliding lower. As a result, the change in sentiment has brought the rally’s credentials into question.
TRON (TRX/USD) joined the broad-based uplift that raised the total value of Cryptocurrencies back over $2 trillion last week. And although by no means the best performer, TRX gained a respectable 98%, surging from $0.4860 to $0.9805. Unfortunately, in the last 10 days, the crypto market rally has run into a roadblock, and many assets are turning lower. As yet, it’s still unclear if this is a healthy pause or will develop into something more sinister.
Currently, the TRON price is trading around $0.8400, down 3.80% this morning, around 15% below the August high, and 54% beneath May’s $0.1844 top. Although, the bulls should not be too disheartened as TRX is still showing a 200% return year-to-date. However, those numbers may be subject to change in the coming days as TRX is grappling with an important support level, which may act as a springboard higher or trap door lower.
The daily chart shows a trend line from the July low is supporting the price at $0.8890. This trend has been tested numerous times over the last month, including this morning. So far, the support has remained intact, and as long as that remains the case, the TRON price outlook is positive.
However, above the market, a considerable band of resistance is seen between $0.9500 and $0.1030. This is a significant obstacle for the price and must be uncapped for the bulls to gain confidence. However, accompanying weak technicals suggest this resistance will prove unscalable in the near term.
The trading volume is incredibly light and does indicate an influx of capital. Furthermore, the Moving Average Convergence Divergence Indicator (MACD) has turned negative. And the RSI is experiencing a bearish divergence.
This suggests the support may soon give way. And if that happens, the fate of the bulls lies with the 200-day moving at $0.7159. And until the resistance is cleared, this scenario looks likely. However, above $0.1030, the outlook swings dramatically back in their favour.
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