Tron (TRX) Outperforms Bitcoin, But Here’s Why It Could Correct Lower

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Tron price is up over 5%, while bitcoin is down over 5% against the US Dollar. TRX is currently testing a crucial resistance near $0.0385 and it could correct lower in the short-term.

  • Tron price is trading in a positive zone well above the $0.0320 pivot level against the US dollar.
  • The price traded to a new weekly high at $0.0386 and it is currently consolidating gains.
  • There is a key connecting bullish trend line forming with support near $0.0350 on the 4-hours chart of the TRX/USD pair (data source from Kraken).
  • The pair is likely to correct lower, but the bulls are likely to defend $0.0350 or $0.0320.

Tron Price Jumps 5%

In the past few sessions, tron price followed a bullish path above the $0.0300 level against the US Dollar, and it outperformed bitcoin and ethereum. TRX even broke the $0.0350 resistance zone and settled well above the 100 simple moving average (4-hours).

The price traded to a new weekly high at $0.0386 and it is currently consolidating gains. An initial support is near the $0.0370 level. It is close to the 23.6% Fib retracement level of the recent rally from the $0.0316 low to $0.0386 high.

The first major support on the downside is near the $0.0350 level (the breakout zone). There is also a key connecting bullish trend line forming with support near $0.0350 on the 4-hours chart of the TRX/USD pair.

Tron (TRX) price breaks $0.0350. Source: TradingView.com

The trend line coincides with the 50% Fib retracement level of the recent rally from the $0.0316 low to $0.0386 high. On the upside, tron is facing a major hurdle near the $0.0385 zone. If the bulls successfully clears the $0.0385 resistance, the price could rally again.

The next major resistance is near the $0.0400 level, above which the bulls are likely to aim a larger increase towards the key $0.0500 zone in the coming days.

Dips Likely to be Limited in TRX

If TRX price fails to clear the $0.0385 barrier, it could correct lower. An initial support is near the $0.0350 zone, where the bulls are likely to appear.

It seems like dips are likely to remain supported, but any losses below $0.0350 could lead the price towards the $0.0320 support zone in the near term.

Technical Indicators

4-hours MACD – The MACD for TRX/USD is gaining momentum in the bullish zone.

4-hours RSI (Relative Strength Index) – The RSI for TRX/USD is currently well in the overbought zone.

Major Support Levels – $0.0370, $0.0350 and $0.0320.

Major Resistance Levels – $0.0385, $0.0400 and $0.0420.

Via: https://www.newsbtc.com

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