The TRON price has pulled back 10% in the last two days as altcoins continue to dislocate from market leader Bitcoin. TRON (TRX), like the majority of altcoins, has failed to mimic Bitcoin’s (BTC) strength recently. This morning, BTC has tagged a five-month high of $57,500 as investors position ahead of a possible green light for a Bitcoin ETF. However, BTC’s gains come at the expense of the rest of the market. As a result, TRX is starting to feel heavy and vulnerable.
Although TRON has staged a strong recovery from the July lows, it failed to clear trend resistance in September. Furthermore, similarly to much of the market, TRX has not fully recovered from the China FUD sell-off in the final three weeks of last month. Despite gaining around 30% from the late September low, the TRON price is unchanged over the last two months. As a result, TRX is grinding against the 200-day moving average (DMA) which if fails to hold, could trigger a breakdown.
The daily chart shows TRON is trading at $0.09360, just below the 50 DMA at $0.0956 and above the 200 at $0.0900. Below the 200 DMA, the 100-day at $0.08240 offers additional cover for the longs. However, If the price drops below the 200-day, the 100 should also fall. If that happens, a sharp drawdown could extend the price towards the July low, around $0.04890.
However, if TRX starts to break ground above the 50 DMA, bullish momentum could push it towards significant trend resistance. Nonetheless, the outlook remains bearish until successful clearance of the trend at $0.1120.
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