Tron Cements Top 10 Status With Bullish Breakout, TRX Spikes 16% Into Overbought Zone
Tron's price rises parabolically since Aug. 18, securing its top 10 spot. Will it revisit its all-time high soon?
Key Takeaways
- TRX surpassed Cardano in market cap rankings on Aug. 20.
- TRX’s price surged over 16%, hitting overbought territory.
- Potential for TRX to reach a new high of around $0.17.
In a remarkable display of strength, Tron (TRX) overtook Cardano (ADA) in the top 10 cryptocurrency rankings by market capitalization on Aug. 20, as TRX’s price surged ahead while ADA’s growth stagnated.
While ADA managed a brief uptick of around 4%, TRX skyrocketed by over 16%, cementing Tron’s position in the top tier. However, this meteoric rise has also pushed TRX into overbought territory, sparking concerns about its capacity for further growth.
At the time of writing, Tron boasted a market capitalization of $14.2 billion, leaving Cardano’s $12.6 billion in its wake.
TRX Price Analysis
TRX started its upward trend in November 2022, trading around $0.05. By Feb. 29, 2024, it had climbed to nearly $0.15, achieving an impressive gain of over 200%. After reaching its peak, TRX’s price dropped by 30%, hitting a low of $0.10 on April 19. It then rebounded to a lower high of nearly $0.13 and commenced an uptrend.
On May 12, the daily RSI neared the overbought zone at 67%, and a death cross in the MACD on May 19 signaled further bearish momentum. Despite these indicators, TRX resumed its upward movement, retesting its previous high on July 14, but was rejected.
During its subsequent decline, TRX held above its ascending support and has since bounced back, presenting a bullish scenario. The more significant five-wave impulse that began in November 2022 is now progressing into its final wave 5.
In this outlook, the wave 4 correction concluded at the low on April 19, marking the beginning of the final wave.
An ascending channel has formed, with its support holding firm at the recent low of $0.11 on Aug. 5, suggesting the potential for another uptrend toward the channel’s resistance. From there, we saw a rise of 41%, leading to today’s high of $0.167.
The daily chart RSI is at 84%, and values were last seen in February at their previous yearly high. The price has increased parabolically since Aug. 18, and the momentum continues; how much more upside does TRX have?
TRX Price Prediction
Previously, we expected TRX to continue rising, but only to the ascending channel’s resistance of around $0.153. As it continues past this level, the projection is reevaluated. Zooming into the hourly chart and examining the wave structure since Aug. 18, we see it most likely finished its wave 3 out of the five-wave impulse from a lower-degree count.
This is why we could see a short-term pullback for a retest of the broken resistance for support around $0.152 before another higher high. If TRX does manage to continue for one higher high, it could revisit its all-time high area of $0.17 on its ending wave.
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