Search ForexCrunch
  • Tron price still within the ascending parallel channel showing it remains bullish.
  • TRX upward movement hindered by the 200-day SMA.
  • Tron needs to close the day above the 200-SMA to continue the bullish momentum.

Tron price has been repeatedly rejected by the 200-day simple moving average over the last four days after rising within an ascending parallel channel since July 21. The digital asset has remained bullish as bulls remain focused to push TRX higher.

Can The Tron Price Violate the 200 SMA?

Tron price forms an ascending channel pattern on the daily chart indicating that TRX’s uptrend remains intact despite several corrections along the way. Tron price prediction is largely bullish as its immediate uptrend is plugged on the channel’s middle line where it coincides with the 200-day Simple Moving Average (SMA). Breaking out from this resistance is crucial if the uptrend is to be sustained and bolstering TRX price towards the May 29 top at around $0.095.

Note that buyer concentration at $0.071 provides immediate support. Moreover, holding on to this crucial level in the near term will allow the bullish pressure to sustain the uptrend. However, a daily closure below this level may extend losses even further.

The 50-day SMA at $0.062 provides the next fundamental support for the TRX price. Note that, as long as the Tron price remains within the channel boundaries, traders can expect a continued uptrend.

Tron Price (TRX/USD) four-hour chart

TRON Price Daily Chart

Note that this bullish narrative is accentuated by the Moving Average Convergence Divergence (MACD) indicator by its position above the midline in the positive region. In addition, the movement of the 12 EMA above the 26 EMA adds credence to this bullish thesis.

Moreover, the Relative Strength Index (RSI) affirms this bullish outlook as it enters the overbought region.

TRX Could reach these Levels

On the upside, the daily closure above the 20-day SMA will bolster Tron bulls to test the next hurdle at $0.077 where the 100-day SMA currently sits. If this happens, TRX could explore levels the $0.090 psychological level and May 21 highs around $0.095.

On the downside, if Tron price closes the day below the $0.071 support wall, the bears could stretch the prices towards the 50-day SMA at $0.062. However, a slice through this support level could see the Tron price re-test the July 20 low around $0.05.

Forex traders should note that the Relative Strength Index (RSI) was overbought on August 07 at 74, a situation that quickly reversed the trend bearish. As the RSI retreated from the area above 70, the odds for a bearish technical outlook were amplified. Note that is the RSI retreats beneath the midline toward the oversold keeps the sellers in control of TRX.

Looking to buy or trade Tron now? Invest at eToro!

Capital at risk

Expert score

5

Etoro - Best For Beginner & Experts

  • 0% Commission and No stamp Duty
  • Regulated by US,UK & International Stock
  • Copy Successfull Traders
Your capital is at risk.