Tron (TRX) could be about to confirm the beginning of a broader rally

Avatar James Lochner 2 years ago

The entire crypto market has been rebounding to the upside over the past few hours, as Bitcoin goes through major resistance. TRX, native to the Tron network, is not being the exception, however, it still needs more gains to be really bullish.

At the time of this writing, TRX is trading at $0.070, accumulating a gain of 1.85% in the last 24 hours, and 6.08% in the last 7 days. Its market capitalization is $6,506 million, so it ranks 17th in the ranking of Crypto Online.

Technical analysis of the weekly chart of the price of Tron (TRX)

In this time frame we see a rather encouraging scenario for this cryptocurrency, but it still needs some confirmations to be reliable.

We see that the price of Tron TRX has been locking itself in a big descending triangle, after a strong bullish rally.

It is feasible that this triangle is the break of the long-term trend. To confirm that the bulls regained control of this trend, the resistance at $0.091 must be overcome.

For now we are a little far from this happening, maybe a couple of weeks or months away. However, the strong rejection of low prices, and the continued defense of support at $0.055, tells us that this is a scenario with good odds in your favor.

Otherwise, if the support at $0.055 is lost, the scenario would be quite negative, as it would tell us that the price needs to make a broader correction of the long-term trend.

Technical analysis of the weekly chart of Tron (TRX). Source: TradingView.
Technical analysis of the weekly chart of Tron (TRX). Source: TradingView.

Key short-term levels

On the daily chart we can see how the price of Tron (TRX) has been locked in a small lateral range between $0.063 and $0.070.

Today the price is again defying the resistance of this range; and due to the widespread bullish trend in the crypto market, it is most likely that this time it will be crossed, making way for a strong rally, perhaps towards the $0,090 zone in the short term.

In case the consolidation support level is lost, we may see sales up to $0.055. If this happens, the demand area surrounding that price could again defend the price, because there is a strong buying interest there.

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