Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.
After taking off from the $0.06-support, Tron (TRX) made impressive progress on its chart. Higher lows alongside steady highs beyond the 38.2% and 50% Fibonacci level bagged in well-desired up-channel (white) gains.
With the 61.8% level reflecting a momentous stiffness, a likely drawdown could propel a patterned breakout in the four-hour timeframe. In this case, the $0.07-$0.08 range should cushion any potential bullish endeavors. At press time, TRX was trading at $0.0832, up by 6.12% in the last 24 hours.
TRX four-hour chart
Source: TradingView, TRX/USDT
TRX’s ascending channel crystallized after the prices revived from a low of $0.064 on 2 May. The morning star candlestick setup catalyzed the buying build-up at the $0.066-level. Thus, driving a nearly 40% growth until TRX poked its five-month high on 5 May.
Then, as the price approached its multi-week trendline resistance (yellow, dashed), the alt quickly turned it back on it while breaking out the current pattern. To confirm a negative outcome for the buyers, TRX needs to convincingly close below the pattern. From there, the 50% Fibonacci level and the $0.076-support would be potential targets for the sellers.
Having a bird’s eye view of the broader trend, the buyers should not find it difficult to support the retracements at the basis line (green) of the Bollinger Bands (BB). Despite a potential fall from the upper band of the BB, the price could hover in the upper zone of the BB in the coming times.
Rationale
Source: TradingView, TRX/USDT
The alt’s technical indicators made it clear that buyers dominated the ongoing momentum. The RSI showed slowing signs after testing the overbought mark twice in the last 24 hours. A continued progression in its current direction could cause a short-term setback on TRX’s chart.
To top it up, the Aroon Up (yellow) ditched its upper ceiling and took a slight plunge. This trajectory hinted at gradual ease in the buying vigor. Further, the CMF seemingly approached the zero-mark. But a revival from its trendline support can affirm a hidden bullish divergence with the price action.
Conclusion
All in all, the momentum rested with the buyers. But with the confluence of the 61.8% Fibonacci resistance coupled with a reversal pattern, TRX could see a near-term pullback. In which case, the $0.07-zone would be vital for the buyers to swoop in and defend to prevent a bloodbath.
Besides, the investors/traders should consider Bitcoin’s movement and its impact on broader market perception to make a profitable move.
