TRON RSI Signal Previously Led to an 80% Increase — Can TRX Price Reach a New All-Time High?
Can TRX Price Reach New All-Time High? | Credit: Veronica Cestari
Key Takeaways
- TRON’s daily RSI gave a bullish signal for the second time since 2022.
- The TRX price trades above a 405-day ascending support trend line.
- Can the signal and support trend line put an end to the ongoing correction?
The TRX price has corrected 25% since reaching its yearly high of $0.145 on February 28. Due to the decrease, TRX’s bullish structure hangs by a thread. However, the daily RSI has given a bullish signal that previously led to an 80% increase. Can the same thing happen again?
What is TRX’s Bullish Signal?
TRX has increased alongside an ascending support trend line for the past 405 days. The trend line has been validated six times (green icons), most recently on April 18. The retest was a result of the downward trend ongoing since February 28.
Since the trend line has been in place for a long period of time, the bullish trend remains intact as long as the trend line exists.
Even though TRX is at risk of breaking down, the daily RSI has given a bullish signal that has previously catalyzed an upward trend. The TRON RSI signal is a bullish divergence (green) from inside oversold territory.
Bullish divergences often lead to bullish trend reversals. Since the indicator is in oversold territory, the signal gains greater prominence.
Such a bullish divergence has occurred only once since the start of 2022, more specifically in January. After the divergence, the TRX price increase 80% over the next 103 days. It remains to be seen if a similar increase will follow in the upcoming months.
TRX Price Prediction: Is a New All-Time High Likely?
The weekly time frame chart suggests the TRX price is finishing wave four in a five-wave upward movement. The entire move started in November 2022.
Currently, TRX trades in a three-level support, created by a horizontal support area, the previous ascending parallel channel pattern and the 0.382 Fibonacci retracement support level. The weekly RSI is also at 50 (red circle), so whether the TRX price bounces or breaks down will also have ramifications for the RSI’s trend.
The presence of the channel aligns with the possibility that the decrease is part of wave four. In an impulsive increase, the price often breaks out from the channel in wave three and then returns to validate it in wave four.
So, if the count is accurate, TRX will bounce inside its support and begin the fifth and final wave toward the all-time high of $0.180.
Conversely, a weekly close below the $0.107 horizontal support area will mean TRX is still correcting. Then, the price will likely fall to the channel’s support trend line at $0.095.
RSI and Wave Count Predict Reversal
Even though the TRX price has corrected for over two months, the RSI and wave count both predict the correction is coming to an end. The TRX price is likely to bounce from its current confluence of support level and begin an upward movement toward its all-time high soon.
