Tron Upward Price Momentum At Risk Unless Key Resistance Is Breached

Over the past few weeks, the price of Tron (TRX) has experienced a bull run. However, it has struggled to break an important resistance level for a significant period.

Over the past 24 hours, TRX has seen an increase of 1%, while on the weekly chart it has registered a gain of 3%. The bullish momentum has been maintained since it crossed the $0.68 price level. The technical outlook suggests a possible shift towards bullish influence.

The demand and accumulation indicators are showing correction on the daily time frame. While Tron has managed to resist the broader market sentiment affecting other altcoins, it remains sensitive to bitcoin’s price fluctuations.

In order to maintain its daily gains, it is important for TRX to overcome the immediate resistance level. Failure to do so could result in a reversal of its upward trend. The increase in TRX market capitalization indicates that the market has started to regain demand.

Tron Price Analysis: One Day Chart

At the time of writing, Tron (TRX) was trading at $0.078. The altcoin faced an overhead resistance at $0.079, and a successful move above this level is likely to propel TRX above the $0.080 mark. However, if it is rejected at $0.079, the coin could experience a significant decline.

It is worth noting that TRX previously faced rejection at the $0.083 level, which will act as an important resistance. On the downside, the nearest support for Tron is located at $0.074.

If TRX fails to sustain above this support, it could decline further to $0.068. TRX was trading in the green in the previous session, indicating that buyers have started to take control of the price.

technical analysis

Tron (TRX) is currently showing signs of recovery in terms of demand on the daily chart, after losing investor interest earlier this month. The Relative Strength Index (RSI) indicates that buyers are gaining dominance in the market, as it is above the halfway line. This indicates a positive sentiment and increasing buying pressure.

Additionally, TRX price has moved above the 20-simple moving average (SMA) line, indicating that buyers are controlling the price momentum in the market.

This further supports the notion that buyer dominance is prevalent. For TRX to sustain this buyer momentum, it is important for TRX to overcome the $0.079 resistance area. If TRX successfully overcomes this level, it could continue its upward move

Contrary to rising demand, TRX is maintaining a sell signal based on the Moving Average Convergence Divergence (MACD) indicator on the daily chart.

The MACD histogram formed red bars, indicating sell signals for the altcoin. This suggests a possible downside in price if TRX fails to move above the immediate resistance level.

Furthermore, the Chaikin Money Flow (CMF), which measures capital inflows and outflows, is below the halfway line. The upcoming trading sessions will be crucial for TRX to determine its future direction.

Featured images from Unsplash, charts from TradingView.com