Tron (TRX) Price Analysis: Cup and Handle Pattern Could Define the Trend

Key Takeaways

• Tron (TRX) trades inside a bullish cup and handle pattern.
• The TRX price failed to close above a critical resistance area.
• Can TRX break out and complete the cup and handle pattern?

The TRX price movement is unlike the rest of the crypto market, since the coin has made higher highs since February.

Nevertheless, the TRX price failed to break out from a key resistance level despite positive news regarding USDT usage and transactions.

This article will analyze several TRX charts to determine whether a breakout or breakdown is more likely.

TRX’s Bullish Pattern

The daily time frame TRX analysis shows a significant decline following the all-time high price of $0.45 in December 2024.

Since then, TRX has gradually increased, creating a cup and handle pattern.

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The cup and handle is a bullish pattern, meaning it usually leads to breakouts. If accurate, the TRX price will complete the handle, after which a breakout is likely.

A breakout that travels the entire pattern’s height will take the TRX price to $0.36.

Despite the bullish pattern, technical indicators are bearish. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are falling.

The MACD made a bearish cross (black circle) while the RSI is almost below 50, both signs of a bearish trend.

Therefore, the daily time frame analysis does not confirm if the TRX price will break out or down.

What’s Next for TRX?

While the price action shows a bullish pattern, the wave count presents an alternative, bearish TRX prediction.

According to the count, the TRX price completed a five-wave downward movement from December 2024, a leading diagonal.

The ensuing increase is an A-B-C corrective structure (green), where wave C was a similar diagonal, ending at the 0.382 Fibonacci retracement resistance level.

So, the wave count suggests the trend is bearish, and the ongoing increase is corrective.

If it transpires, it will lead to a breakdown and a decline to $0.165.

Uncertain Trend Ahead

The TRX price has increased gradually since February.

The wave count and price action disagree on whether the upward movement is impulsive or corrective.

TRX’s movement over the next few days can determine the direction of the long-term trend and ascertain whether a breakout or breakdown is more likely.