The TRON price is gaining bullish momentum and is once again testing the resolve of a significant long-term trend line at $0.108. TRON (TRX/USD) is currently trading at $0.103, higher by 3.84% today and up 16% in October. TRON’s current market cap sits around $7.25 billion, making it the 30th most valuable cryptocurrency ahead of Ethereum Classic (ETC/USD).
Bitcoin’s remarkable 55% rally to a new high this month lifted the combined value of the crypto market to $2.75 trillion. As a result, several altcoins have seen record prices in the last few days. However, TRON is still fighting to hurdle overhead resistance. Furthermore, TRX is 16% below the September high, 43% below 2021’s high, and 70% beneath the all-time high. Nonetheless, TRON’s recent price action is encouraging, and whilst it’s too early to suggest a run towards May’s $0.164 top, September’s high of $0.124 could soon be under threat.
The daily chart shows a descending trend line from the May high is currently capping the TRON price at $0.108. If TRX pushes through trend resistance, an extension towards $0.124 looks likely. Furthermore, above $0.124, an argument can be made for an exaggerated rally targeting the May high. Below the market, the 200-day moving average at $0.090 and the 100 at $0.088 underpin the bullish view.
Considering the constructive technicals, I’m bullish on TRON, with an initial price target of $0.124. However, this view relies on TRX staying above the key moving averages. On that basis, a drop below $0.088 invalidates this thesis.
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This post was last modified on Oct 26, 2021, 03:43 BST 03:43