Home / Analysis / Crypto / Technical Analysis / TRON Bullish Divergences Play Out – TRX Price Increases 15% Since April Lows

TRON Bullish Divergences Play Out – TRX Price Increases 15% Since April Lows

Last Updated May 8, 2024 7:33 AM
Valdrin Tahiri
Last Updated May 8, 2024 7:33 AM
By Valdrin Tahiri
Verified by Peter Henn

Key Takeaways

  • The TRX price has increased nearly 15% since falling to a low of $0.104 on April 19.
  • TRON broke out from a 57-day descending resistance trend line.
  • Has the TRX price started its fifth wave, and if so, how long will it continue increasing?

TRX was one of the best performers in the end of April. While most of the crypto market, including Bitcoin, reached their lows in April 30, TRX did so on April 19 and has increased since. 

After a bullish signal, TRX broke out from a descending resistance trend line. Is this the beginning of a new upward movement, and if so, when will TRX reach a new yearly high?

TRX Price Finally Breaks Out

On April 20, the TRX price fell to a low of $0.104. But, the same day, it began an upward movement and created a bullish candlestick (green icon). Shortly afterward, TRX reclaimed the $0.112 horizontal area and broke out from a descending resistance trend line. 

At the time, the trend line had existed for 57 days, sloping the decline since the yearly high of February 28. So, the breakout indicated the correction is over. 

The TRX upward movement was also preceded by bullish divergence in both the RSI and MACD (green lines). A daily time frame divergence in both is rare and often leads to bullish trend reversals, as has been the case for TRON.

TRX Breakout
TRX/USDT Daily Chart | Credit: TradingView

The breakout likely marks the beginning of a long-term wave five, as is outlined below. The increase could take the price to $0.167, very close to the all-time high of $0.18.

A movement above the $0.125 horizontal and Fibonacci resistance area will confirm this possibility.

Are TRX Divergences Playing Out?

The TRX price has corrected 28% in the 61 days since reaching its yearly high of $0.145 on February 28. The decrease culminated with a low of $0.104 on April 19. TRON has increased since and is close to breaking the resistance trend line that has existed since the aforementioned yearly high.

There are two interesting developments taking place since the bounce.

Firstly, the price reclaimed the $0.11 horizontal support area, confirming the previous decrease (green circle) was a deviation. Now, the area is expected to provide support once again.

TRX Price Generates Bullish Divergence
TRX/USD Daily Chart | Credit: TradingView

Secondly, there is a bullish divergence in both the daily RSI and MACD (green line). These divergences are relatively rare and often lead to significant price increases.

When combined with the deviation and reclaim, it suggests a bullish trend reversal is forthcoming. The previous time there was such a bullish divergence was at the start of 2022, leading to an 80% TRX price increase.

If TRX  breaks out from the descending resistance trend line, the main resistance will be at $0.125. The 0.5 Fibonacci retracement resistance level and a horizontal resistance area create this target.

TRX Price Prediction: Upward Trend Could Continue

The TRX wave count since November 2022 indicates the divergences will play out and TRX has started an upward movement. If the count is accurate, TRX has just started the fifth and final wave of its upward movement.

Wave four’s bottom occurred at a confluence of support levels. More specifically, the previously outlined $0.11 horizontal support area, the 0.382 Fibonacci support level and the resistance trend line of a previous ascending channel.

The breakout from the channel confirmed the price is in wave three, while the return to it marked wave four.

TRX Price Prediction Wave Count
TRX/USDT 2-Day Chart | Credit: TradingView

The most likely target for the top of the movement is near $0.167. The target is found by the 1.61 external Fibonacci retracement of wave four (white), and will give wave five 0.618 times the length (red) of waves one and three. This is slightly below the TRX all-time high of $0.18.

Potential TRON Bottom Reached

Bullish divergences in TRX have historically correlated with market bottoms and have previously led to an 80% upward movement. The possibility of a bottom also aligns with the wave count and price action. These signals predict that TRX will increase in the upcoming months, approaching its all-time highs.

Was this Article helpful? Yes No