Tron on Thursday rose up to 33.33% against the US Dollar as the crypto market headed for an extended upside action.
The TRX/USD tested a new weekly high at 0.016-fiat, according to data available at BitFinex, before correcting lower towards 0.0144-fiat, an intraday support. It should be more likely a bull flag formation, meaning the pair should continue trending upwards in near-term. However, there are still many crucial resistance levels to keep an eye on, beginning with 0.0162-fiat, a high established during the November 20 rebound attempt. It had strongly rejected the advances made by the bulls, a characteristic that could impact the ongoing rally as well.
The chart is also forming an inverse head and shoulder pattern, with its interim neckline level corresponding with 0.016-fiat. However, there is a likelihood of price extending its bullish correction and test 0.0174-fiat as the next neckline resistance – and primary upside target for long traders.
The falling trendline in orange had capped the upside until very recently. With that broken, the TRX/USD is somewhat inside a false breakout zone. It means that the pair could still end it’s bullish action and go below the said trendline, continuing its downtrend. The Tron market should not expect a full breakout action unless the TRX/USD invalidates its 200-period simple moving average to the upside. The pressure, thus, falls on Tron’s market fundamentals that should maintain the investors’ interest in the project.
The RSI momentum indicator is above 80 which is considered a strong bullish area. The TRX/USD should consolidate above 60 to maintain the upside bias. Any downside correction below the said level would bring the bears back in the market. The Stochastic Oscillator is forecasting a similar scenario while trending in a positive territory.
The TRX/USD is now trading at 0.0156-fiat, up 8.33% from the said level.
The optimistic project updates have always worked for the Tron market albeit for shorter times. The ongoing TRX/USD rally also coincides with a couple of development updates made recently by founder Justin Sun. For instance, he tweeted recently about the growing number of decentralized applications being launched on the Tron blockchain. He boosted the optimism further by speaking about how the transaction volume on their decentralized exchange is hitting new highs.
“TRON’s official DEX has also seen strong growth with a daily transaction volume of over 100 million TRX. Based on the Bancor Protocol, the DEX receives lots of applications for token listings every day,” the update read.
The Tron team also released a new patchwork update called Odyssey 3.2 whose primary aim is to “solve the problem of simultaneous production block at the same witness.”
The hype around updates nevertheless could not overextend its stay, meaning a price drop would ensure sooner or later after day traders exit their longs on small intraday profits.
Hope the support levels hold well, should that happen.
Click here for a real-time Tron (TRX) trading chart.
Featured Image from Shutterstock. Charts from TradingView.
Last modified: May 20, 2020 2:20 PM UTC