Here’s why Tron [TRX] might face a slump despite an 11% surge

Tron [TRX] broke free from a crucial level of resistance. The crypto-asset slumped after establishing a local top of $0.09 on the 15th of August. However, TRX quickly flipped the narrative to climb $0.101, a level that was last seen on the 19th of May after rallying 10.55% over the past 24-hours. Even as the broader crypto market was far from the blistering rally, the price dynamics appear optimistic as the collective valuation soared to a whopping $1.23 trillion.

At a market cap of $7.29 billion, Tron has surpassed Theta to reclaim the 25th spot after posting more than 21% weekly gains. The crypto-asset registered a 24-hour trading volume of $1.63 billion, at the time of writing.

Tron [TRX] Daily Price Chart

The volatility in the TRX market has picked up following the upswing. The low volume could, in fact, pose a threat to the much-anticipated price action. On the other hand, the moving averages depicted a promising outlook. After a bullish crossover with the 100 DMA [Blue], the 50 DMA [Pink] was now aiming for a Golden Cross with the 200 DMA [Yellow]. If this does transpire, TRX could get the necessary traction to climb the previously reclaimed levels and surge to new highs.

The green closing bars of Awesome Oscillator [AO] indicated a growing bullish momentum in the market. The MACD also underwent a bullish crossover after TRX’s climbing to level not seen in more than three months. The Relative Strength Index [RSI] attempted to climb above the overbought region after registered a bearish divergence.

Selling pressure might be lead to a dip in Tron’s. But the overall market conditions seem to be fairly bullish. Hence, there’s a high chance that the potential slump might not drive a deeper correction. Currently, there is little resistance till $0.11 level, a break above which would bring in $0.15 and $0.164 levels at play.

On the other hand, the support levels stood firm at $0.08, and $0.05.

Chayanika Deka: Chayanika is a full-time journalist at TronWeekly with over two years of experience. A graduate in Political Science and Journalism, she focuses on the political and financial impact of cryptocurrency and blockchain developments.