TRON’s Price Fell 7% in May Despite Bullish Crypto Market – Here’s Why June Could be Better
TRON Fell in May - What About June? | Credit: Derek Fenech
Key Takeaways
- The TRON price had fallen over 7% in May before bouncing at the start of June.
- TRX trades above a long-term ascending support trend line and horizontal support area.
- Will the TRON price regain its footing in June, or will it fare similarly to May?
The TRX price started on a bullish note in May but has fallen since its local high of $0.128 on May 3. Despite the rejection, TRX still trades above a confluence of support levels.
An important development is that the price is in the process of creating a long-term bullish pattern. Will it do so, leading to new highs in June, or will TRON falter instead, finally breaking down below the support.
TRON Trades Above Long-Term Support
The TRX price has increased alongside an ascending support trend line since November 2022. In February 2024, TRON broke out from the 0.5 Fibonacci retracement resistance level, leading to a high of $0.144.
Even though the price has fallen since, it bounced at the support trend line twice (green icon). So far, the trend line has existed for 567 days.
On top of this bounce, the TRX price has validated the 0.5 Fibonacci retracement level at $0.112 as support. The level coincides with the ascending support trend line. So, there is ample support below the current TRX price.
Despite the bullish price action, technical indicators give mixed readings. More specifically, both the MACD and RSI are trending downward. However, the MACD is still positive and the RSI is at 50, casting some doubt as to what the trend’s direction is.
TRX Creates Bullish Pattern
The price of TRON in the daily time frame gives a more bullish reading. Firstly, the MACD’s bullish divergence trend line is still intact, and the indicator just made a bullish cross. The previous time this happened (green) led to a 22% price increase.
Secondly, the TRX price could be in the process of creating the right shoulder in an inverse head and shoulders pattern. This is a bullish pattern that often leads to bullish trend reversals. However, the pattern’s neckline is at $0.132, and the price has to break it in order to confirm the bullish trend.
TRON Price Prediction: Is the Correction Over?
Finally, the wave count for TRX implies the correction is complete. The most likely count is that TRX has completed wave four in a five-wave upward movement (white). If this is the case, TRX started wave five on April 18.
A likely target for the top of this increase is at $0.168. The 1.61 external Fibonacci retracement of wave four creates this target. While it presents a substantial increase of nearly 50%, the target is still below the all-time high of $0.180.
Despite the bullish TRX price prediction, closing below $0.110 will negate the positive outlook. In that case, the TRX price could correct to the next closest support at $0.100.
TRON Could See New Highs if it Confirms Bullish Pattern
The TRX price has created a bullish pattern inside a confluence of long-term support levels. While it is still a long way from confirming it, the wave count and MACD readings both imply the price will eventually break out.
If this is the case, TRON can increase by nearly 50% in June, which might still not be sufficient to reach a new all-time high price.
TRON Bullish Divergences Play Out – TRX Price Increases 15% Since April Lows
