Tron’s [TRX] Downside Pressure Could Sabotage An Imminent Rally

For the most part, Tron [TRX] remained in a bear market even as its peer altcoins went on to climb critical resistances. TRX underwent a brief bullish upsurge after breaching $0.03095 before bears invalidated the momentum. Since then, the coin faced repeated rejection and was struggling to hold on to the level.

Tron has witnessed a strong surge in terms of activity, and it was even reported that the project’s DApp transaction volume figures had recently crossed that of the Ethereum network. But on the price front, things look dim. Tron’s growth has been quite slow this quarter but will it show consistency in the near future?

Over the past 24-hours, Tron [TRX] noted a minor decline of $0.70% which drove its price to $0.03097. The 16th-largest cryptocurrency registered a market cap of $2.21 billion and a 24-hour trading volume of $881 million, at the time of writing.

Tron [TRX] Daily Chart:

Tron resumed an uptrend despite the bearish pressure. The daily moving averages appeared to be depicting a positive outlook for the coin’s price in the near term. After a period of convergence, the two moving averages were hovering in parallel to each other as the 200 DMA [Blue] settled below the 50 DMA [Pink].

This was indicative of a potential period of consolidation below the current range of $0.0309 before a potential upward break targeting another crucial overhead resistance at $0.0348. However, to reach $0.040, the main hurdle is still stood unbreached at $0.0380.

Bullish Signs

Its technicals, however, depicted a different picture. The diverging Bollinger Bands sugged a period of high volatility on TRX’s price in the coming days. the RSI also moved above the 50-median line in tandem with the latest price action. This evidenced a potential sentiment of rising buy pressure among the TRX investors in the market.

A close below the current level would further trigger a downside correction to its nearest support level of $0.026, near the 50 DMA. A further breach of this level could potentially drag the price to $0.022, a level last seen in August. The key resistance levels, on the other hand, were found at $0.0348, $0.038, and $0.040