The Tron price has been under pressure after it rallied to its all-time high last week. The TRX is trading at $0.1320, which is slightly above yesterday’s low of $0.1168.
What happened: Tron, started a few years ago by Justin Sun, has made a remarkable comeback. Last year, amid the coronavirus pandemic, the currency declined to $0.0128. This drop was in line with the overall decline of other cryptocurrencies like Bitcoin and Ripple.
Afterward, the currency bounced back, helped by the overall easy money environment in most countries. The currency has rallied by almost 1,000% from its lowest level in 2020.
Recently, Tron price has surged because of the rising demand for its network. As I wrote last week, recent data suggests that more Tether (USDT) has moved to the Tron network than in Ethereum. At the same time, the number of Tron accounts opened per day has surged. There are now more than 29 million accounts globally. So, what next for Tron price?
Last week, I warned that the Tron price would crash by about 10% to $0.14. To some extent, this prediction was accurate but the size of the decline was wrong. The decline was steeper than I had predicted.
Today, turning to the four-hour chart, we see that the TRX price seems to be forming a head and shoulders pattern. It has already completed the left shoulder and head section of this pattern. Another notable thing is that the price has moved below the 15-day and 25-day moving average. This is a bearish signal.
Further, the Relative Strength Index (RSI) has formed a bearish divergence pattern. Therefore, in my view, the pain is not yet over for Tron. I predict that its price will soon move below $0.10, which is about 25% below the current price. This forecast will be confirmed if the price moves below the red support at $0.125.
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