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Tron (TRX) Price Consolidates Above Key Resistance, Eyeing Breakout

Published
Nikola Lazic
Published
By Nikola Lazic
Edited by Ryan James

Key Takeaways

  • TRX consolidates within a descending wedge on higher time frames.
  • Short-term patterns hint at either a breakout or further correction.
  • Key Fibonacci levels define crucial support and resistance zones.

TRON (TRX) has been forming distinct market structures across multiple time frames, providing clear insights into its potential direction.

While the daily chart highlights a possible reversal, the lower time frame reflects a consolidation phase within a descending wedge.

This analysis delves into the broader context and projects short-term price movements.

TRX Price Analysis

The daily chart of TRX shows a pronounced descending wedge formation after a sharp retracement from its $0.45 high on Dec. 3.

Historically, descending wedges often precede bullish reversals, and TRX appears positioned for such a move if it breaks above the wedge’s upper boundary at $0.267 (0.618 Fibonacci retracement).

TRX price analysis
TRXUSD descending wedge nearing breakout point | Credit: Nikola Lazic/TradingView 

The price action has respected the 0.786 Fibonacci retracement level at $0.218, which has acted as a crucial support zone during this correction.

The daily Relative Strength Index (RSI) remains neutral, recovering from oversold conditions, but it still needs a decisive breakout signal to confirm bullish momentum.

Potential resistance levels on the daily time frame include $0.267 (0.618 Fibonacci retracement) and $0.3023 (0.5 Fibonacci retracement).

If the descending wedge resolves upward, TRX could target these levels before continuing its rally. However, a failure to hold $0.22 could lead to a deeper retracement toward $0.1563 (1.0 Fibonacci retracement), invalidating the bullish outlook.

TRX Price Prediction

The 1-hour chart reveals a more detailed view of the ongoing consolidation within the descending wedge. The wedge’s structure aligns with an ABCDE corrective wave count.

Elliott Wave analysis suggests that the corrective wave “E” is currently concluding, setting the stage for a potential impulsive move.

A breakout from the wedge would likely confirm the beginning of a new bullish phase.

TRX price prediction
TRXUSD price consolidating within wedge | Credit: Nikola Lazic/TradingView 

In a bullish scenario, TRX could target $0.267 (0.618 Fibonacci retracement) initially, with potential extensions toward $0.302 (0.5 Fibonacci retracement) and $0.336 (0.382 Fibonacci retracement).

The RSI on the 1-hour chart shows neutral momentum, but any divergence near key levels may act as an early signal for the breakout.

Conversely, if the price fails to hold support at $0.218, the descending wedge may break downward, targeting $0.20 or even $0.156.

This bearish scenario would align with a continuation of the corrective phase rather than a breakout into impulsive bullish action.

The immediate trajectory will depend on how TRX interacts with the wedge boundaries and whether volume confirms the direction of the breakout.

Key Levels to Watch

  • Immediate Resistance: $0.267 (0.618 Fibonacci retracement).
  • Secondary Resistance: $0.302 (0.5 Fibonacci retracement).
  • Critical Resistance: $0.336 (0.382 Fibonacci retracement).
  • Immediate Support: $0.218 (0.786 Fibonacci retracement).
  • Critical Support: $0.156 (1.0 Fibonacci retracement).
  • Short-Term Target: Above $0.30 if breakout sustains.
  • Invalidation Zone: Below $0.218, signaling deeper correction.

TRX is approaching a critical decision point, with its next move heavily reliant on the wedge’s resolution.

Traders should focus on RSI divergence and volume spikes near key levels to confirm breakout or breakdown scenarios.

Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.
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