Why TRON (TRX) Could See a 35% Drop

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The TRON (TRX) price broke down from the $0.055 long-term hor­i­zon­tal sup­port area. The trend is con­sid­ered bear­ish until this area is reclaimed.

TRX is the native token of the TRON blockchain, cre­at­ed by Justin Sun. The week­ly time frame tech­ni­cal analy­sis is bear­ish. It shows that the TRX price decreased below a descend­ing resis­tance line since reach­ing a high of $0.188 on April 2021. The high was 50% below the Jan. 2018 all-time high of $0.35.

The line has caused six rejec­tions so far (red icons). The most recent was on Nov. 7. It caused a break­down from the long-term $0.05 sup­port area, a decrease seen through­out the cryp­to mar­ket. This was con­sid­ered a very bear­ish devel­op­ment since the area had been in place since May 2021. 

As a result, the TRX price pre­dic­tion is con­sid­ered bear­ish until the price reclaims the $0.055 area. Since the area also coin­cides with the long-term descend­ing resis­tance line, this seems unlikely. 

If the down­ward move­ment con­tin­ues, the next clos­est sup­port area would be at an aver­age price of $0.036.

TRX Price Prediction: TRON Faces Sheer Drop

The dai­ly chart shows that the TRX price began an upward move­ment on Nov. 14, cre­at­ing a very long low­er wick (green icon). Such wicks are con­sid­ered signs of buy­ing pressure. 

After­ward, the dai­ly RSI gen­er­at­ed bull­ish diver­gence (green line), pre­ced­ing the cur­rent upward move­ment. The rate of increase accel­er­at­ed over the past 24 hours, tak­ing the TRX price to the $0.055 resis­tance area, which also coin­cides with the 0.5 Fib retrace­ment resis­tance level.

There­fore, the cur­rent lev­el is ide­al for a rejec­tion due to the con­flu­ence of these resis­tance lev­els. More­over, the dai­ly RSI has reached the 50-line from below, strength­en­ing the legit­i­ma­cy of the resis­tance area.

If a rejec­tion occurs, the TRX price could fall all the way down to the pre­vi­ous­ly out­lined sup­port area of $0.036.

On the oth­er hand, a reclaim of the $0.055 lev­el would inval­i­date this bear­ish TRX price prediction.

For BeInCrypto’s lat­est cryp­to mar­ket analy­sis, click here.

Dis­claimer: BeIn­Cryp­to strives to pro­vide accu­rate and up-to-date news and infor­ma­tion, but it will not be respon­si­ble for any miss­ing facts or inac­cu­rate infor­ma­tion. You com­ply and under­stand that you should use any of this infor­ma­tion at your own risk. Cryp­tocur­ren­cies are high­ly volatile finan­cial assets, so research and make your own finan­cial decisions.

Disclaimer

All the infor­ma­tion con­tained on our web­site is pub­lished in good faith and for gen­er­al infor­ma­tion pur­pos­es only. Any action the read­er takes upon the infor­ma­tion found on our web­site is strict­ly at their own risk.

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