Tron Unaffected by SEC’s ETF Decision Delay — Can TRX Reach $0.08?
Tron is defying the market trend and has increased. More upside could be seen.
Key Takeaways
- Crypto market decreased but Tron rose by 2%.
- It reached its previous descending target.
- The token bounced after its low.
- TRX increases but a strong resistance is ahead.
The cryptocurrency market dropped by 7% from Tuesday, erasing earlier gains, in response to the SEC postponing all ETF decisions for October. It had previously risen on positive news about Grayscale.
Bitcoin has fallen by 8%, Ethereum by 6%, and Binance coin by almost 10%, but Tron increased by 2.6% and is still moving up as it follows its own logic.
Tron is in an uptrend from August 18 and as it defied the market trend. Can TRX continue its positive momentum?
TRX Price Analysis
In our last TRX analysis, we expected a downtrend to $0.072 as a first target price.
On April 16, 2021, TRX reached $0.183, its peak during the latest bull run, before starting a multi-year downturn. This decline formed a descending triangle, anchored by a support level close to $0.05.
The correction structure, culminating in a WXYXZ five-wave pattern by November 15, 2022, along with an upward breakout from the triangle, suggested the initiation of a bull cycle.
Starting from mid-November, the price began forming a five-wave impulse, reaching $0.084 on July 24. Consequently, a downward trend was expected either to the 0.382 Fibonacci retracement level at $0.071 or potentially further down to $0.061.
Now, as the interaction with the 0.382 Fibonacci level ended with the price bouncing on August 18, up by 8.6% at $0.077, two possibilities are ahead.
Potential Decline Ahead
This bounce may signify either a corrective wave, suggesting the possibility of further decline to the lower Fibonacci level at $0.0615, or it could signal the conclusion of the downward movement, with the rise from August 18 initiating a new uptrend poised for a breakout above $0.092.
Zooming into the hourly chart and assessing the wave structure in the upward movement since August 18, it’s clear that this marks the beginning of a significant ascent. The most bullish scenario reveals the start of a new five-wave upward impulse, potentially reaching the upper resistance level above $0.091.
The slightly ascending channel may constitute the second wave or possibly a B wave within an ABC correction to the upside. In this scenario, the price may reach a higher point, though slightly lower, likely near the lower resistance level around $0.085.
This confirmation will come through a breakout from the ascending channel to the upside, and we will gauge this target based on the momentum.
Conversely, if the ascending channel breaks to the downside, with the price dropping below $0.075, this projection will no longer hold.
Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
