TRON Price Bucks Crypto Market Trend with Positive Performance Over Last 24 Hours – Are TRX Bullish Divergences Playing Out?
Will the TRX Bullish Divergences Lead to a Notable Price Surge? | Credit: Veronica Cestari
Key Takeaways
- The TRX price has increased nearly 10% since falling to a low of $0.104 on April 19.
- TRON currently ranks as the #13th biggest cryptocurrency based on its market capitalization.
- Has the TRX price finished its correction, and where will the next upward movement lead to?
Over the last 24 hours, the TRX price increased by nearly 1% despite an ongoing market correction. It is the best performer from the top 100 biggest cryptocurrencies based on their market capitalization.
The increase was preceded by bullish divergences and a positive price action. Did these signals trigger the increase, and if so, what type of upward movement will they induce?
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.
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.
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.
