Tron (TRX) Price Watch: Bearish Pullback or Long-Term Bounce?

Tron Price Key Highlights

  • Tron bounced off the 0.0564 level to signal that buyers are back, but it has yet to break past nearby ceilings.
  • Price is currently testing the 50% retracement level that lines up with an area of interest.
  • A larger pullback could find resistance at the falling trend line and 61.8% Fibonacci retracement level.

Tron made a strong bounce but has yet to break past nearby resistance levels to confirm bullish momentum.

Technical Indicators Signals

The 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, the downtrend is more likely to resume than to reverse.

The gap between the moving averages is widening to reflect strengthening bearish momentum, but price has also moved past the 100 SMA dynamic resistance to signal bullish pressure. The 200 SMA is close to the 61.8% Fib, area of interest, and descending trend line so this would be a pretty strong barrier.

RSI is turning lower without hitting overbought levels to signal that sellers are eager to return. Stochastic is also heading south from the overbought region to indicate a return in bearish pressure. If any of the resistance levels hold, Tron could revisit the swing low or create new ones. On the other hand, a break past the trend line and 0.0700 level could lead to a test of the swing high and a reversal.

TRXUSD Chart from TradingView

Market Factors

The Tron mainnet and virtual machine launch is drawing near and investors are understandably a bit nervous. For one, there’s a chance that problems could arise from its split with the Ethereum network, although the pros appear to be greater.

Then again, there’s a coin dump that’s likely to happen at some point, and this tends to weigh on Tron price. For now, it also looks like the altcoin is drawing support from geopolitical tension, particularly fears of another EU referendum-like vote in Italy.

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