For the past six weeks, Tron’s [TRX] Volatility was within the range of $0.66 – $0.07. The decline from the $0.07 maximum confirmed a bullish continuation pattern on the 4-hour time frame.
The recent decline reinforced the near-term bearish efforts to pull TRX towards the 200 EMA (green) support.
Moreover, with the immediate support in the $0.067 area yet to be tested several times, the bulls could aim to break out of the pattern in the upcoming sessions. A jump above the 20 EMA could indicate a continuation of recovery in the near term. At the time of writing TRX is trading at $0.06843.
TRX 4 Hour Chart
TRX recorded strong growth after recovering from the baseline of $0.063. The recovery from long term support necessitated the presence of a classic bullish flag on the chart.
However, sellers have revealed their advantage in the near term, especially with lower price action near the 20/50 EMA. But with the 200 EMA coinciding with the $0.067 support, altcoins have brighter chances to drive the recovery.
Additional bullish momentum could help TRX to break out of the current pattern. In this case, the $0.0709 mark could determine your buying efforts. Traders/investors should look for rebound signals from this area.
In the event of a death cross on the exponential moving averages, the alternative could see a decline in the short term. Here the potential targets are in the range of $0.065 – $0.066.
The Relative Strength Index (RSI) struggled to cross its mid-line while portraying a somewhat neutral stance. Buyers needed to break through the 50 mark resistance to increase the chances of a bullish breakout on the chart.
Moreover, Balance Volume (OBV) maintained its immediate support despite the lower price action dips. Thus, a slight upward edge appears.
Also, accumulation/distribution saw higher dips as it diverged upwards with price. However, the ADX indicator has shown a rather weak directional trend relative to TRX.
Given the bullish flag structure approaching the 200 EMA support, TRX could see a rebound before meeting heavy resistance. The goals will remain the same as above.
However, investors/traders should consider the movement of bitcoin and its impact on the broader market perception to make a profitable move. Analyzing this should help traders anticipate the possibility of any bullish reversal.