- Summary:
- The Tron price may be up 35% from Wednesday's low but is now struggling to clear the $0.09400 mark. Has the rally started to falter?
The Tron price may be up 35% from Wednesday’s low but is now struggling to clear the $0.09400 mark. Has the rally started to falter?
There were some positive signs earlier in the week for Tron (TRX). It was attempting to break higher out of its narrowing trend.
The Tron price did break the trend and spectacularly. Only, it wasn’t in the direction the market was hoping for.
As the cryptocurrency crash of Wednesday took hold, TRX was soon at the support of ascending trend line at $0.10100. Sadly, the line from the 25th of March low at $0.52200 stood no chance.
The weight of liquidation proved too much, and as soon as the trend gave way, TRX nose-dived by 40% to $0.65200.
This marked the low of the day. The low prices eventually encouraged some buying and many crypto assets managed to find some stability.
The Tron price followed the market higher and bounced 25% from the low. However, even after the bounce, TRX still finished the day lower by -$39%, at $0.81960.
This leaves the question of whether the Tron price can recover from such a beating.
Tron Price outlook
Looking at the 4-hour chart, we can see that TRX has failed to break above $0.09400. There is clearly some residual selling ahead of the important $0.1000 level.
If the price cannot clear this resistance soon, it may well reverse the recent bounce. This would leave the Tron price open to another bout of liquidation. In this instance, the danger would be a return to Wednesday’s low.
On the flip side, if the resistance is cleared we could see the price extend to the previously supporting trend line at $0.11040.
The trend that was once support now becomes resistance.
Tron 4-Hour Chart
Follow Elliott on Twitter.