With a market capitalization of $4.62 billion, Tron has been listed on the 21st spot on the CoinMarketCap list. The digital asset has been returning 151% to the investors year to date. TRX was trading at $0.0261 at the beginning of the year and the rallying market carried it to $0.0656.
At the time of writing, the TRX market was showing that the surge was continuing as it was valued at $0.063.
Tron Daily chart
Source: TRXUSD on TradingView
The above chart of Tron noted that the asset’s value was stuck under $0.0339 until January. However, as February brought in a high bullish momentum, the price of TRX broke above the resistance and surged higher to $0.0704.
TRX did not visit the price level in two years and finally rallied with Bitcoin and other alts. The current price was rising within an ascending channel, awaiting a breakout. Although the price continued to climb higher, there are high chances of a strong correction.
Reasoning
The current market may first witness a bullish breakout. The TRX market was starting to see increased volatility as the Bollinger bands diverged. The divergence was a sign of the price pushing to a higher level. Whereas, the signal and the 50 moving average had taken a position under the candlesticks. This was a result of the price trending higher.
Whereas the relative strength index was on the verge of entering the overbought zone. This indicated that the buyers were building a higher pressure in the market than the sellers’ at the time of writing. The overall momentum in the market has remained overly bullish, however, given the MACD line’s sharp rise, there are chances of a strong fall following the uptrend.
Conclusion
The current market of Tron appeared to be extremely bullish. However, this strong bullish trend might be followed by a strong correction. As the price tests the next immediate resistance, traders might want to practice caution as a trend change cannot be discounted.
