Disclaimer: The results of the following analysis are the sole opinion of the writer and should not be considered investment advice.
As anticipated by a previous article, Tron [TRX] reversed from its falling wedge-like structure before retreating into bearish clutches. For over eight weeks, sellers have been trying to breach the $ 0.063 (now resistance) support.
The recent drop below this level has positioned TRX below its 20/50 EMA to represent a bearish edge.
With the bulls holding the trendline support for a week (white) in the $ 0.062 zone, TRX could now enter a rather slow phase. At press time, TRX was trading at $ 0.06277.
TRX 4-hour chart
The altcoin saw an expected bearish pull after taking an eighty from the 50 EMA (cyan) on its descending wedge breakout rally. This reversal, coupled with market sentiment, resulted in a major blow to the TRX bulls as they failed to defend the $ 0.063 level.
With the 20 EMA (red) and the 50 EMA (cyan) still looking south, sellers would continue to hold their short-term advantage on the charts. A convincing close below trendline support would only reaffirm this narrative.
After a classic double bottom breakout, the two-week trendline resistance (white, dashed) reduced buying efforts and reignited bearish pressure. Right now, TRX could aim to find some bounce ground from the $ 0.0623 baseline.
All in all, a break above the $ 0.063 resistance could change the short-term narrative in favor of the bulls. Here, the (dotted) trendline resistance could represent a barrier to recovery in the $ 0.064 zone. Failure to do so could result in further bearish pulls. A close below the $ 0.062 baseline can expose TRX to a retest of the $ 0.0614 threshold.
The Relative Strength Index (RSI) compressed into the 41-50 range. Buyers should look for a potential close above equilibrium before taking a long position.
Interestingly, the CMF has risen above zero to represent an increasing buying advantage. However, a convincing crossover on the MACD is still needed to confirm the rise in bullish power.
TRX’s close below the 20/50 EMA after losing the $ 0.063 level has repositioned the coin on a plausible bearish track. To invalidate bearish biases, buyers need to claim the level above and push a swing above the two-week trendline resistance. The objectives would remain the same as discussed.
Finally, investors / traders should consider Bitcoin’s movement and its impact on the broader perception of the market to make a profitable move.