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Tron [TRX/USD] Technical Analysis: Struggling to find momentum as buying weakens

Anirudh VK

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Tron [TRX/USD] Technical Analysis: Struggling to find momentum as buying weakens
Source: Unsplash

After experiencing a growth of 17% in the past 7 days, Tron [TRX]has seen a drop earlier today of almost 5%. Even at its current $0.022 price, TRX faces uncertainty regarding the next step in its market movement.

30 minute:

There is a continuous downward trend from $0.0262 – $0.0241 down to the $0.0235 – $0.0225. This is contrasted by the uptrend from $0.0225 – $0.022, which forms a channel prime for a breakout.

The Stochastic indicator has just recently recovered from its oversold position and is moving upwards, denoting the collection of momentum for the price.

The 20-period DEMA is providing a support at $0.0222.

1 hour:

The EMA is at $0.023, providing a ceiling for the coin to break in order to continue its upwards run.

The Klinger Volume Oscillator is flashing a bullish sign as seen by the MA crossing over the indicator as it was moving upwards.

There is also a descending triangle formation being formed.

4 hour:
The Awesome Oscillator is flashing red and forming the bearish twin peaks pattern as seen by the decreasing red lines on the histogram.

There is a triangle being formed between the $0.00192 – $0.0027 uptrend and the $0.025 – $0.0239 downtrend.

The 20-period Weighted Moving Average is at $0.0235, and the price needs to push past this to begin the next move upwards.

1 day:
The Accumulation Distribution indicator is confirming a slight downward trend reflected in the price movement from $0.025 – $0.023.

The Chalkin Money Flow indicator shows that the buying pressure is lesser than the selling pressure, as evidenced by the value being below zero.

The EMA is at $0.0213, providing a support for the price to fall back on in case of a bearish breakout.

There is also a pattern forming between $0.039 – $0.024 and $0.0181 – $0.021.



Conclusion:

Tron will find itself on the cusp of a breakout in the upward direction, only if the selling pressure reverses. Then, the coin may gain momentum that will push it closer to the important $0.039 level which will mark a reversal in the long-term trend.





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Anirudh VK is a full-time journalist at AMBCrypto. He has a passion for writing and interest towards the future of blockchain technology and cryptocurrencies. He does not own any cryptocurrencies currently.

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Bitcoin [BTC] Halving: CoinMetrics pegs top-crypto to rise above $20,000 peak in late-2021

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Bitcoin Halving: CoinMetrics pegs top-crypto to rise above $20,000 peak in late-2021
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With a year left for the highly anticipated Bitcoin [BTC] halving, many expect the price of the top-cryptocurrency to surge prior to May 2020. Analysts have previously opined that three months to one year before the halving does the price of the cryptocurrency move up.

A new piece of research from the cryptocurrency analytics firm, CoinMetrics, suggested that in addition to the precursor pump, Bitcoin [BTC] will reach its “local peak” 18 months after the halving.

 

CoinMetrics charts the price of the top coin, divided based on the 2012 and 2016 halving, showing a noticeable trend. A little more than a year after the first halving when the 210,001 block was mined, the price of Bitcoin surged above $1,000 for the first time, in December 2013 to be precise.

Next, During the July 2016 halving, the coin was trading at just above $600 and within the suggested period of 18 months, the top virtual currency saw its second peak. On 17 December, the coin reached a never-before-seen high of over $19,700 as the Chicago Futures exchanges embraced the digital assets market.

With the price of Bitcoin over $5,000 for the first time in over four months, and the precursor halving bulls on the horizon, the price could surge. Furthermore, based on CoinMetrics’ inference, Bitcoin will see its third peak, higher than $20,000, by the close of 2021, eighteen months after the May 2020 halving.

The halving protocol was placed in the original whitepaper to thwart inflationary pressure that would arise with more blocks mined and more Bitcoins supplied. Historical charts prove that this objective has been adhered to, with a constant drop in the inflation rate with the two previous halvings.

In 2012, the inflation was over 25 percent and immediately after the miner reward reduction to 25 BTC per block, it dropped to under 15 percent. A bracket between 7 percent and just under 20 percent sustained until the second halving in July 2016.

The second halving saw a decline in inflation rate to under 5 percent for the first time in the coin’s history, which has been maintained till today. CoinMetrics pegs the inflation, at press time, to be 3.8 percent. Furthermore, if the historic trend continues, the inflation rate would drop by more than 50 percent to 1.8 percent in May 2020.



Based on the current market and using a historical outlook, analysts suggested that 2019 will be the year of building the industry while the price effect will manifest next year, with the halving being at the very core. Many believe that institutional interest on the rise and the growing crypto-adoption surge could result in a bullish 2020.

Charlie Lee, BTCC’s co-founder suggested in December 2018 that Bitcoin’s next rally will begin in “late 2020”, months after the halving and would peak in December 2021 at 333,000. However, the precursor to this rise would be a January 2019 bottom of $2,500 which did not materialize.





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