Tron Rebounds by over 10% as Cryptocurrencies Experience a Brief Relief Rally

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Tron has experienced a sharp rebound from the steep declines seen this week, as it rises 11% over the past 24 hours of trading. Tron is currently being traded at $0.0197, still under the $0.02 handle, after experiencing a 22% price drop over the past 7 trading days.

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This week Tron has made some generous headlines as Bitcoin Superstore now accepts Tron as a payment, connecting Tron to a network of over 200 thousand retailers.

Tron has also recently acquired blockchain.info which is a very well known domain name that can raise its profile even further.

Tron is currently ranked in 11th position in terms of overall market cap across the entire industry with a total market cap value of $1.30 billion. It has suffered a 42% price drop over the past 30 trading days.

Price Analysis

TRX/USD – SHORT TERM – DAILY CHART

https://www.tradingview.com/x/4U0IYLcW/

Since our last analysis, the Tron market has experienced a precipitous decline evidenced by the 22% drop over the past 7 trading days. This price drop pushed price action further than our expected levels, our support and resistance level have now been adjusted.

We had expected Tron to hold at the February lows around $0.023, however, price action continued its decline further lower. We can see that in yesterday’s trading session, Tron had reached support at a long term downside 1.272 Fibonacci Extension, drawn in maroon, priced at $0.01626. This downside Fibonacci Extension is measured from the entire price decline witnessed during May and June when price action started from a high of around $1 on the 30th of April 2018 and fell to a low of $0.034 on the 29th of June 2018.

We can also notice that this area of support had been significantly bolstered by another, short-term, downside 1.414 Fibonacci Extension priced at the same level, drawn in green. This added support helped hold the market above this level and the rebound was witnessed today.

We can see that price action is now trading above the downside 1.272 Fibonacci Extension level, drawn in green, priced at $0.018. If the bullish momentum continues to hold price action above this downside 1.272 Fibonacci Extension level then we expect immediate resistance above this level to be located at the psychological round number of $0.02 and then followed by February’s price low at $0.023. Further resistance above this level is expected at Aprils price low at the $0.028 handle followed by the round number $0.03 level.

Alternatively, if the bears can take control again and push price action below the downside 1.272 FIbonacci Extension we expect immediate support to be located at the long term downside 1.272 Fibonacci Extension level, drawn in maroon, priced at $0.016. If the bears can push price action even lower, further support expected below this level is expected at the short term downside 1.618 Fibonacci Extension level priced at $0.0125.

The technical indicators are still, heavily favouring the bears at this moment in time. The RSI is currently trading well below the 50 handle and is in extreme oversold conditions. For a sign that the bearish momentum is losing its dominance we will be watching for the RSI to make its way back toward the 50 handle. A break above 50 would indicate that the bulls have finally regained some momentum within the market

 

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