Tron [TRX] Price Analysis: Token primed for a possible bullish breakout in the near future

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Justin Sun’s Tron is currently the ninth-largest cryptocurrency in the world, just below Stellar Lumens [XLM]. The price of TRX at press time was $0.0242 with a market cap of $1.6 billion.

TRX registered $147 million in terms of trading volume and most of it came from OKEx exchange, which contributed $13 million via the trading pair TRX/USDT. BitForex contributed $11 million via the same trade pair.

1-hour

Ascending Triangle Pattern

TRX, on the hourly chart, showed the formation of an ascending triangle pattern, which is a bullish pattern. The pattern formed obeyed all the characteristics of an ascending triangle pattern i.e., decreasing volume, horizontal and ascending trend line with a minimum of two reaction points.

The prices are currently consolidating after a sharp decline on February 24, 2019. The consolidation of the prices will end in a breakout, possibly to the upside.

According to the basic definition of an ascending triangle, the length of the breakout is usually up till the widest point of the triangle. The resistance point for Tron in the hourly time frame is the horizontal trend line i.e, $0.0248 and the support is at $0.0242.

The Parabolic SAR indicator and the MACD indicator point to a bullish reversal sign for TRX in the above-mentioned time frame.

The Volume indicator shows a continuously decreasing trend, which denotes that consolidation is underway.

1-day

The one day chart showed a downtrend that extended from $0.04982 to $0.02695, while the uptrend extended from $0.01292 to $0.02353. The price was bouncing between the support at $0.01190 and resistance at $0.02670. The subsequent resistance can be found at $0.03961.

The MACD indicator indicates a progression of the bearish crossover. The histogram represents the same with the development of red bars below the zero-line.

The Chaikin Money Flow shows a collapsed CMF line which indicates that the sellers are dominating the TRX market.

Conclusion

Although the ascending triangle pattern formed in the one-hour time frame indicates a bullish breakout, possibly to $0.0258, it is recommended to take the same with a grain of salt. The SAR, MACD, and the Volume indicators show a bullish scenario currently underway. The one-day chart shows a rather bearish outlook for TRX as confirmed by the CMF and the MACD indicators.


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Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time journalist at AMBCrypto. Holds XRP due to peer pressure but otherwise found day trading with what little capital that he owns.

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