Tron [TRX] on verge of massive plunge if it breaks $0.06-support area

The cryptocurrency market recovered mildly after the weekend blues. Several notable tokens along with Tron [TRX], appeared to be on the verge of what could be a defining breakout. The crypto-asset was still up by almost 4% over the past 7-days.

Tron had been on a consolidation mode since the crash on the 19th of May which has led to the formation of lower lows with each correction.

TRX noted an increase of a minor 0.6% over the past 24-hours which drove its price to $0.077. At the time of writing, the digital asset registered a market cap of $5.54 billion and a 24-hour trading volume of $894 million.

Tron [TRX] Daily Price Chart:

Tron [TRX] formed a symmetrical pattern on its daily chart as the price candles continued to oscillate between the two sloping trendlines over the past three weeks. The price of the asset could break on either sides after the completion of the pattern formation. But in this case, the bears appear to have an upper hand.

The down-sloping 50 DMA [Pink] appeared to be heading for a bearish crossover with the 100 DMA [Blue] which maintained its steady upward trajectory. In addition, both the moving averages stayed above the TRX price candles depicting high bearishness in the market.

Also, the ill-fated volume could very well fail in providing necessary traction to the price of the coin.

The green closing bars of Awesome Oscillator indicated a weak bullish momentum in the coin. The bullish crossover below the half-line of MACD also depicted a weak sentiment of buying pressure. In line with this, the RSI also exhibited a bearish phase as it continued to hover below the 50-median line as selling pressure slowly engulfed the market.

From the above chart, it can be stated that the bulls are buying on dips, while bears are selling on rallies. As the bearish pressure rose, the price of Tron now risks a turndown and a potential break below the trendline of the symmetrical triangle which could drive it to the immediate support area of $0.06.

However, if this zone cracks and the selling pressure intensifies, Tron could be up for a damaging market event and a spiral down to lows of $0.04 and $0.02 respectively.

Resistance levels for the crypto-asset, on the other hand, remained unbreached at $0.09, $0.106, and $0.136 respectively.