TRX Price Analysis

Key Takeaways

Tron (TRX) broke down from a parabolic support trend line.
The TRX price broke out from a short-term diagonal resistance.
Is the TRX price increase a relief rally or a bullish trend reversal?

Tron is back in the spotlight after a sudden recovery pushed TRX off its recent lows.

However, despite the excitement, the broader TRX price analysis still reveals significant structural damage that could limit any potential upside.

With TRX breaking down from a parabolic trend that held for more than two years, market observers now want to know whether this bounce signals a reversal or just a temporary pause before another leg down.

Here’s what the charts reveal.

The weekly chart shows a parabolic increase in TRX’s price since the start of 2023.

TRX bounced at the support trend line multiple times, confirming its validity.

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Bears Tighten Their Grip

While the price action is worrying, momentum indicators raise even more red flags.

A bearish divergence in the Relative Strength Index (RSI).
A bearish divergence in the Moving Average Convergence/Divergence (MACD).
The RSI is below 50.
The MACD is negative.

All signs point to more downside ahead.

TRX Indicators — TRX/USDT Weekly Chart | Credit: Valdrin Tahiri/ TradingView

A TRX price breakdown from a long-term structure combined with bearish divergences is never a good sign.

Despite this week’s bounce, bulls should be prepared for a 23% decline to the $0.225 support area.

The reaction once the price reaches that point will be key in determining what comes next.

TRX Creates Bullish Pattern

The weekly time frame yields bearish readings, confirming that TRX will decrease in the long term.

However, the daily chart offers some hope for the bulls.

According to it, the TRX price has created a bullish, double-bottom pattern.

Not only is the bullish pattern in place, but bullish divergences (orange) in the RSI and MACD accompany it.

TRX Short-Term — TRX/USDT Daily Chart | Credit: Valdrin Tahiri/ TradingView

Combined, these readings suggest that a significant bounce may occur.

Nevertheless, the charts also indicate that there is significant resistance above the current price.

Hence, the upside potential may be limited to another 4%, targeting the $0.30 resistance area.

If TRX fails to break through that zone, the long-term downtrend is likely to resume.

Bounce Before Breakdown

Tron’s latest bounce is encouraging, but the bigger picture still leans bearish.

The breakdown of a two-year parabolic support line, combined with bearish divergences, suggests that a larger correction is underway.

Short-term momentum may offer relief, but TRX will need to reclaim multiple resistance levels to shift the long-term trend.

Until then, buyers must remain cautious, since the major test lies ahead at the $0.30 zone.

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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.

About the Author

Valdrin Tahiri

Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.

He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.

Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.

He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.

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TRX Price Rebounds After Major Breakdown — Relief Rally or Start of a Reversal?