Bitcoin’s [BTC] latest upward momentum has provided several altcoins including Tron [TRX] with the opportunity to gradually climb higher. Unlike its peer crypto-assets, TRX had failed to report any handsome gains despite several developments in terms of the Tron ecosystem.
After an underwhelming performance, Tron appeared to be slowly recovering. The coin sprung back up as it rose by more than 4% over the past week. Furthermore, the coin exchanged hands at $0.0292 against the US Dollar after noting a minor surge of 0.30%. At the time of writing, TRX registered a market cap of $2.093 billion and a 24-hour trading volume of $633 million.
Tron [TRX] Daily Chart:
A price pattern bounded by two trendlines of a descending triangle pattern and was found to be sloping downward. This pattern essentially carried bearish implications even as the asset attempted a recovery above its immediate resistance-turned-current price level.
Tron appeared to be challenging a potential rejection at the current level. However, if this pattern holds true, the crypto-asset could now retrace to the recently breached support levels.
Technicals Depict A Market Recovery
The Klinger Oscillator underwent a long-anticipated bullish crossover on the 13th of December after nearly two weeks. The reversal to the bullish trend was hence crucial. Furthermore, Stochastic RSI also exhibited an uptick. This may drive the TRX’s price up and invalidate potentially the pattern formation.
There are two scenarios at play now. The first one is if the descending triangle pattern triggers a drop, Tron could fall to its nearest support level of $0.0240. Another support point was found to be at $0.022. The bulls would require to aggressively defend this level, failing to do which could prompt a decline to $0.015.
But the bullish hints also cannot be ignored. The indicators clearly depicted a positive flip after a significantly long tryst with the bears. If Tron manages to break above the current price level and breach the pattern, it could target its overhead resistance of $0.0353 and $0.0401 respectively.