Search ForexCrunch
  • TRON slides into the bears’ hands as selling pressure intensifies.
  • The impending losses are likely to test support at the 200-day SMA.

TRON is in the middle of a retreat from a month-long consolidation between $0.025 (support) and $0.0275 (seller congestion zone). At the time of writing, this token is changing hands at $0.024 amid a building bearish momentum. The bearish scenario comes into action after TRON survived a malicious attack during a mainnet update earlier this week.

TRON breakdown eyes $0.021

The most recent bearish impulse in the market caught TRX bulls unawares, sending it beneath the crucial support. The 50 Simple Moving Average (SMA) in the daily timeframe allowed pressure to build upon TRX/USD, hence the drop under the 100-day SMA.

According to the Relative Strength Index (RSI), TRON is mainly in the bears’ hands and is likely to continue with the breakdown targeting $0.021, as highlighted by the 200-day SMA. Tentative support at $0.0225 may absorb some of the selling pressure, reducing the magnitude of the anticipated fall. The Moving Average Convergence Divergence (MACD) adds weight to the bearish outlook as it dives under the midline.

TRX/USD price chart

TRX/USD daily chart

Looking at the other side of the fence

Santiment, a renowned platform providing on-chain data and analysis, shows that development activity regarding TRON has been growing since mid-October. The metric gives an overview of a project’s Github related activity over some time.

Increasing development activity suggests that a project is serious about the future. Therefore, the platform has the potential to continue growing both the token’s value as well as the network.

TRON development activity

TRON development activity chart

Simultaneously with TRON development activity on the rise, it means that the token is bound to resume the uptrend. On the other hand, the daily chart shows that if consolidation comes into the picture at $0.023, the bearish outlook would be invalidated. Reclaiming the ground above $0.25 is likely to attract investors’ attention, which could place TRX on a path back to $0.0275 and $0.03, respectively.