- TRX fell 9.5 percent after earlier breakout past key resistance at $0.107
- RSI shows significant bearish divergence with trading volume falling near 18 percent
- Founder Justin Sun teased for a big news regarding TRX earlier, resulting in massive buyer interest earlier
Tron price analysis suggests that the coin has fallen into a retest mode after breaking past the key resistance level at $0.118 earlier in the day. Founder Justin Sun tweeted a teaser regarding a big news for TRX, which resulted in price surging over 17 percent from yesterday.
It took the token past its key resistance point at $0.107. However, price the surge was followed by a quick retreat, as Tron entered a retest phase where bearish patterns have emerged.
Price has fallen over 10 percent, falling as low as $0.09, with trading volume also dipping 18 percent. At current level, TRX traders might have to wait till price settles near or above resistance before entering the market. Tron’s decline was replicated by the larger cryptocurrency market, as Bitcoin and Altcoins showed distinct reds.
Bitcoin fell 2.5 percent down into the $44,000s, whereas Ethereum saw a 5 percent downfall to just above $3,200. Bigger losses were seen with Ripple and Dogecoin, at 6 and 5 percent, respectively. Cardano fell the greatest, around 11 percent down to set at $2.4.
TRX/USD 24-hour chart: Inverted hammer pattern seen as price enters retest
Over the 24-hour chart, the TRX/USD pair can be seen facing a distinct decline after an upsurge that took price as high as $0.118, forming an inverted hammer pattern. The exponential moving averages however present a positive outlook, trading above 20,50, 100 and 200-day averages.
The 24-hour Relative Strength Index (RSI) has moved as low as 59, indicating the bearish sentiment that has taken over. Price currently sits near the upper Bollinger bands’ curve, indicating an overvalued status, justifying the retest state. Over the next intra-day trading sessions, price needs to stop the decline and consolidate above the pivot at $0.1 in order to re-find the previous upturn.
TRX/USD 4-hour chart: Retest phase observed on 4-hour chart as price tests support
The 4-hour chart for TRX/USD pair provides a clearer picture of the retest phase in play for TRX, presenting an early signals opportunity for incoming traders in the market.
Price currently tests support at $0.08 with the moving average convergence/divergence (MACD) also presenting a bearish sentiment. It still trades above the neutral zone, indicating possibility of some bullish momentum still remaining in the coin. The 4-hour RSI is set at a mid-value of 55, indicating the retest phase in progress.
From technical analysis, it can be seen that while TRX has gone into retest, there is still bullish momentum and potential for the token to form an uptrend. For this to happen, price needs to consolidate near the pivot at $0.1. With Justin Sun’s supposedly big plans for TRX, a breakout past the key resistance point at $0.118 can be expected soon, which will be an excellent point for traders to jump into the market.
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