Tron Technical Analysis: More Downside Expected As The Price Tumbles

Tron Technical Analysis: More Downside Expected As The Price Tumbles
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TRX/USD

From January 27th the price of Tron has been in a downtrend and has decreased by 35.35% coming from $0.00000850 to $0.00000552 at its lowest point on last Thursday. As the price managed to recover from there and came up to $0.00000609 over the weekend and came down to $0.00000560 level we could be seeing the end of the downtrend. Prior to the start of this downtrend, the price of Tron has increased by 183.35% from 26th of November until the 27th of January when it reached the mentioned high at $0.00000850 and as have seen a price decrease of over 35% which is indicative of a retracement.

On the hourly chart, you can see that the price of Tron came up from November last year in a five-wave manner and as it ended the start of a downtrend was seen. As the price is currently below 0.5 Fibonacci level, meaning that the price has retraced more than 50% from the upswing, we could see the further downfall to the 0.618 Fibonacci level before the downtrend ends.

Recently a descending channel was formed with whos resistance line the price interacted with on 23th of March and was rejected at those levels setting the price for more downside, but as the price made a higher low compared to the one made last Tuesday we could be seeing the start of a breakout to the upside.

Zooming out on to the daily chart, we can see that the price of Tron finished its three-wave correction on 12th of September according to my count which is why from there until the downtrend started I have accounted the structure to be another ABC correction to the upside.

This corrective increase looks similar to the one made on the 17th of March last year and ended in April with the price increase of over 190% in a three-wave movement. The price is below the 0.236 Fibonacci level on the daily chart around which a significant stop point is and more significantly it has interacted with the upper level of that zone at $0.00000609 and got rejected there which indicates that the price is staying in the lower range at least for now.

If we see an increase from here it is most likely going to be corrective an isn’t exceeding the prior high level, but as the chart looks bearish I believe that most likely we are to see a breakout to the downside from the current range in which case I would be expecting a retest of the resistance zone’s support level which would be around $0.0000053.

Ultimately as the ABC to the upside ended I would be expecting the price significantly lower as it could have been the second wave X from the prolonged WXY correction in which case the final wave Z to the downside should develop with the price going lower than the first two times it fell back.

The price target for the expected decrease would either around the 0.00000205 or even lower to the resistance levels of the first horizontal range formed by the price when the coin entered the market.

About Nikola Lazic