Tron (TRX) Testing Resistance, Poised for a Potential Breakout

Key Takeaways

• Descending channel breakout signals potential bullish momentum.
• Wave structure aligns with Elliott Wave’s corrective and impulsive phases.
• Key Fibonacci levels define critical price zones for reaction.

TRON (TRX) exhibits a complex price structure characterized by a descending channel formation on higher time frames, while the lower time frame suggests a breakout attempt.

The price action aligns with Elliott Wave principles, indicating a possible shift in trend direction. Fibonacci retracement levels provide crucial areas for both support and resistance, shaping the next potential moves.

TRX Price Analysis

On the 4-hour TRX chart, price action reveals a descending channel formation that has developed since reaching an all-time high of $0.45 on Dec 3.

This pattern suggests a prolonged corrective phase, likely forming a complex wave structure labeled ABCDE. 

TRX recently broke above the channel’s resistance, potentially signaling the completion of this correction.

The 4-hour Relative Strength Index (RSI) has recovered from oversold conditions, indicating renewed buying interest.

However, it remains below extreme bullish territory, suggesting room for further gains. The key resistance zone lies around $0.28 (0.382 Fibonacci retracement), while immediate support is at $0.229 (0.5 Fibonacci retracement), a level that has historically provided strong reactions.

If TRX sustains momentum above the channel breakout, further upside toward $0.345 (0.236 Fibonacci retracement) becomes possible.

However, failure to hold above $0.229 could expose TRX to another leg down toward the $0.176 support (0.618 Fibonacci retracement), invalidating the breakout scenario.

TRX Price Prediction 

The 1-hour TRX chart displays a more detailed Elliott Wave impulse structure emerging after the descending channel breakout.

The price is currently forming what appears to be wave (i) of a new five-wave impulse, with wave (ii) likely developing as a corrective pullback.

The key question remains whether TRX will establish a higher low and confirm a bullish continuation.

In an ideal scenario, wave (iii) would extend beyond the $0.28 resistance, targeting higher Fibonacci levels. A retracement in wave (iv) could bring price action back to $0.26 before the final leg (wave v) pushes towards $0.32.

If this structure unfolds correctly, TRX could enter a new bullish phase.

However, there is an alternate scenario in which TRX fails to sustain above the breakout and falls below $0.229. This would indicate that the channel breakout was a false signal, leading to a deeper correction towards $0.176 or even lower.

RSI momentum suggests mild bullish divergence, meaning short-term price action will be crucial in determining the dominant trend.

Key Levels to Watch

• Immediate Resistance: $0.281 (0.382 Fibonacci retracement).
• Key Support: $0.229 (0.5 Fibonacci retracement).
• Critical Support: $0.176 (0.618 Fibonacci retracement).
• Short-Term Target for Wave (v): Above $0.30 if momentum sustains.
• Invalidation Zone: Below $0.176, signaling a potential downtrend continuation.