Tron: Chalking out the odds of TRX unleashing its volatility

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Dis­claimer: The find­ings of the fol­low­ing analy­sis are the sole opin­ions of the writer and should not be con­sid­ered invest­ment advice

While extend­ing its com­pres­sion in the $0.063-$0.0702 range for near­ly sev­en weeks, Tron [TRX] has been in a low volatil­i­ty phase. Unlike most coins, TRX took a side­ways track over the past month but main­tained its spot above the 20/50 EMA.

In par­tic­u­lar, the last two weeks marked an uptick in price lev­els as the bulls strived to snap the $0.0702-level hurdle.

An inabil­i­ty to close beyond this bar­ri­er lev­el could extend the con­sol­i­da­tion phase in the com­ing ses­sions. At press time, TRX was trad­ing at $0.06997.

TRX Daily Chart

Source: Trad­ingView, TRX/USDT

TRX wit­nessed a sharp recov­ery after drop­ping towards its year­ly low on 15 June. The revival from its long-term sup­port entailed a rec­tan­gle bot­tom struc­ture on the dai­ly chart.

While the bulls forced a bull­ish crossover on the 20 EMA (red) and the 50 EMA (cyan) after near­ly two months, TRX revealed the build-up of its under­ly­ing buy­ing edge. To top this off, the alt­coin saw an ascend­ing tri­an­gle-like struc­ture as the flat­ter peaks accom­pa­nied the high­er troughs.

A sus­tained incline beyond the imme­di­ate resis­tance could open door­ways for a retest of the $0.0704-$0.0706 range.

To sway above the con­straints of its com­pres­sion bound­aries, TRX bulls must pro­pel a much-need­ed hike in trad­ing vol­umes. The break above the $0.0702-mark could serve as a reli­able trig­ger for its press time bull­ish bias.

Rationale

Source: Trad­ingView, TRX/USDT

The Rel­a­tive Strength Index (RSI) main­tained its posi­tion above the mid­line, but was yet to top­ple the 56-mark to con­firm strong revival chances.

The Accumulation/Distribution (A/D) indicator’s low­er troughs bull­ish­ly diverged with the price. Any rebound from its trend­line sup­port could fos­ter an accu­mu­la­tion phase. How­ev­er, the ADX con­tin­ued to project a sig­nif­i­cant­ly weak direc­tion­al trend for the altcoin.

Conclusion

Giv­en the bull­ish pat­tern set­up after a bull­ish crossover on the 20/50 EMA, TRX could see sus­tained growth. Any drop below the near-term EMAs could inval­i­date the con­vinc­ing bull­ish ten­den­cies. The tar­gets would remain the same as above.

Final­ly, investors/traders should con­sid­er Bitcoin’s move­ment and its impact on broad­er mar­ket per­cep­tion to make a prof­itable move.

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