Tron(TRX) Enters A Corrective Phase With Descending Channel Pattern.
Zameer Attar14 May 20241 min read
Tron on Tuesday started with a neutral momentum but corrected below the crucial support zone of $0.125. Also, retested the same zone, followed by a bearish downward trajectory.
The 1 hour chart of TRX/USDT shows price has been battling to break out of the descending channel pattern but facing resistance. With crucial support sitting at $0.124, further resistance could continue the dip to test this support.
A decline in RSI to 29.4 indicates increased selling pressure and the bulls trying to create room for buyers. Reaccumulation is required to lift the price above the SMA50 level, as currently, it’s trading closer to the 200 SMA of $0.1242
Traders Wait For the Breakout
A breach above the resistance points of the Descending channel could mean the end of Tron’s bearish rally. This pattern for traders gives key points to watch out for as the major support is near.
However Tron’s recent fundamentals and increased onchian activities still stand strong to uplift the trend. Lido Dao, a tron-based DeFi coin is on the top gainers list with a significant TVL increase, is also heating the buying pressure.
While the TRX trend remains bullish in the mid-term, and long term with Moving average crossovers all in the Strong buy zone. For short-term entry now, we might wait for the channel patterns breach.
The breach from any direction will continue the rally in the same trends.
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