Tron (TRX) Technical Analysis: Tether Launches New Tron-Based Stablecoin, Rally Underway
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Big news has hit the headlines today as Tether announces its new partnership with the Tron Foundation. Together the two top 10 crypto projects are expecting to launch of a new USD-pegged stablecoin sometime in Q2. The proposed TRC-20 token will give the expanding community of dApp users a much less volatile asset to transact over the Tron network with.
In terms of price activity, the latest partnership news did little in encouraging strong bullish support early on but now that Bitcoin appears to be on the move, the #1 asset is starting to lift the altcoin market with it. TRX is currently up around 9.89% against the US dollar and 6.25% against BTC, and looking like it may test the upper resistance soon of the descending channel that it’s been tracking in over the last month.
The Story So Far
On the 1D TRX/USD chart we can see that the asset has been travelling in a descending channel since January 22.
Between February 22 - 24 there was a ‘fakeout’ where the asset broke out of the channel and appeared bullish but quickly crashed back into it soon after.
From there TRX fell onto the key $0.0236 level, which has played an important role as both a strong support and resistance for Tron over the last 3 months. On March 2 the increasing selling pressure was able to overcome the supporting level and turn it into an imposing resistance.
The Story Right Now
The price action right now has finally managed to break clear of the first key resistance, off the back of Bitcoin’s improving market performance.
On the 4HR indicators there are a host of positive signs that suggest TRX will continue pressing on and potentially test the descending channel resistance soon at around $0.0247.
- Strong bullish convergence between the 12MA and 26MA on the MACD indicator.
- RSI is climbing up towards the overbought region as buying momentum continues to increase.
- The indicator line of the Chaikin Money Flow indicator is also climbing high away from the zero line.
- Parabolic SAR dots have started to appear beneath the price action.
- Bullish convergence between the Aroon Up and Aroon Down lines.
- Candles are starting to climb into the resisting kumo cloud on the ichimoku indicator. However, we will need to see candles close well above the kumo cloud before we can confirm a strong reversal signal.
The key resistances going forward are likely to be the $0.0244 and $0.0247 levels.
The $0.0236 level should provide strong support going forward now that the asset has managed to successfully close above it.
If TRX can break out of the channel this time without crashing back into it then we may see the asset ricochet off the $0.0249 resistance before throwing back on to the descending channel resistance as a new support.
From there the $0.0251 and $0.0255 levels could be potential price targets for bullish traders over the rest of this week if the current momentum resumes.