Tron [TRX] has faced severe rejection over the past several weeks. Its value initiated a strong decline after rallying towards the $0.0400 level against the US Dollar. The bullish momentum took a break after forming a local top below the said resistance point.
TRX noted a minor rise of 0.44% over the last 24-hours which drove the coin’s price to $0.0303. At the time of writing, registered a market cap of $2.172 billion and a trading volume of $693 million. It can be observed that the bears were currently attempting to sustain the price below crucial support levels despite the coin consolidating in an uptrend.
Tron [TRX] Daily Chart:
The daily moving averages depicted a stagnant price movement for the coin in the coming days. The 50 DMA [Pink] slid below the 100 DMA [Blue] following TRX’s price downturn in the early weeks of November. Nearly a month later, the two moving averages did not show any signs of a bullish reversal in the near-term.
The 50 DMA continued to hover below the 100 DMA and was moving in parallel to each other. This suggested that a switch to bullish favor might not materialize just yet. Tron [TRX] could potentially consolidate before a potential breakout.
However, both the DMAs settled below the TRX price candles, which was a positive sign and hinted at the presence of bullish pressure.
The dotted markers of the Parabolic SAR, aligned above, continued to resist an upward break for the Tron price candles which was a bearish indicator for the coin in the near-term.
In tandem with the price action, RSI also formed lower highs, despite holding the fort above the 50-median line. This was indicative of a diminishing sentiment of buying pressure among the investors in the TRX market. It is important to note that the RSI formed a head and shoulders pattern with the latest downtrend. If this pattern holds true, the indicator could drop below the 50-median and near the overbought zone.
To maintain a bullish trend, Tron would need to hold the current level. Resistance for the coin stood at $0.0348, and $0.0401 while support points were found to be at $0.0279 and $0.0241