Tron (TRX) Technical Analysis: Doesn’t Make New Coinbase List, Bulls Don’t Seem to Care
Tron entered back into the top 10 cryptocurrencies this month in style, standing out as one of the best performing altcoins against BTC over the past seven days with a solid 5.24% gain. Despite not making it on to the latest prospective list of cryptocurrencies to be added on to Coinbase, bullish support has continued to arrive for the asset - driving it towards a key resistance at 390 Sats.
In the news recently, Tron’s 28 community elected ‘Super Representatives’ approved Proposal #7, which aims to increase dApp activity by 500% - most likely in a bid to outcompete their main market rival, Ethereum. The long-standing feud between Tron CEO Justin Sun and Ethereum Co-Founder Vitalik Buterin recently heated up again over Twitter, after Justin Sun claimed Vitalik ‘admitted’ buyers speculating on Ethereum last year triggered the Q4 crypto boom, and offered to ‘rescue’ Ethereum developers if they moved their dApps to the Tron Network.
Will Tron continue to climb further up the Coinmarketcap leaderboard? Let’s take a look.
On the 1D TRX/BTC chart, we can see that the asset has been range-bound between the 300 and 390 Sats mark since August, with a central flipping support/resistance level at the 250 Sats level. We can use this central line to the same effect as a MACD signal line - If the price action falls below this central line, it is likely that the price action will fall back on to the range support at 300 Sats before recovering. If it breaks above it, it is likely to continue and retest the main resistance at 390 Sats.
Inside the current range, we can also see that TRX has been consolidating inside a pennant pattern since October 6. Because TRX has entered the pennant from a downtrend, we would expect the price action to continue bearish after breaking out. However, we could see a reversal breakout if candles start to close above the downtrending resistance.
Looking at a number of indicators over 1D candles, we get the impression that bullish momentum is still building behind the asset despite the recent bearish correction, and that a breakout reversal is looking possible:
-The CMF has been climbing steadily since late October, with the indicator high above the zero line. This is a good sign that buying pressure is still building behind TRX.
-On the RSI, we can see that the indicator line is currently up at 61% and closing in on the overbought region above, as buying momentum continues to drive the asset upward.
-Candles have already started closing above the 1D resisting kumo, which is a strong bullish signal.
-On the Parabolic SAR we still have indicator dots beneath the price action, which tells us that bulls are still in control at the moment.
We are still waiting for stronger bullish confirmations to come from a golden crossover between the 50 and 200 EMA lines as well as a break above the current range resistance at 390 Sats, but for now this is looking promising.
If bulls are able to overcome the first key resistance then their next target will be to break back into a very critical region between the 437 and 478 Sats (red area), which has been a historical area of support and resistance for the asset dating back to December 2017. From there, the 437 Sats would likely become a very strong support and allow bulls to push on further, and recover more ground.
TRON (TRX) Key Resistances and Supports
R1: 390 Sats (2.42%)
R2: 437 Sats (14.70%)
R3: 478 Sats (25.46%)
S1: 350 Sats (-8.14%)
S2 (Uptrending Pennant Support): Approx 312 Sats (-18.11%)
S3: 300 Sats (-21.26%)