TRON prices continue sliding as bears mount pressure on the coin. The decline was triggered by a bearish breakout from an ascending wedge pattern and a break below a key support level at 0.05400. The overall declining sentiment witnessed in the entire cryptocurrency market is also contributing to the downside momentum.
With TRON prices trading at $0.05419, bears could attempt a test of the next support level at 0.05200. If these levels are breached, it would strengthen the bearish sentiment and subsequently push prices lower toward the major support area at 0.04600 where bulls might attempt to defend the area.
Descending channel forms on the daily and 4-hour chart
Tron price analysis on the daily chart (data feed via Bitfinex) shows that the TRX/USD pair has formed a descending channel pattern. It is indicative of the overall bearish sentiment in the market
TRON/USD 4-hour chart:TradingView
The price broke below a major support area at 0.05400, which ignited heavy selling pressure and led to a drop toward $0.05419 – the lowest TRON price since October 11.
A stochastic oscillator points to oversold conditions and could trigger a bounce from the current levels. However, a signal line crossover is yet to form which would indicate that bulls are gaining momentum.
The 4-hour chart also indicates bearish sentiment as prices break below the key support level at $0.05400. It was previously acting as a key hurdle for the bulls, and its break started the current drop.
The TRX/USD pair is now likely to test support at $0.05200, which could act as an interim level to determine whether the downtrend continues or if prices attempt a pullback.”
The bears continue to dominate the market as indicated by the Relative Strength Index (RSI), which is currently below 30, indicating that the bears are in control of TRON prices. The Fibonacci retracement tool shows that TRON has been tracking a downward trend over the past week, with prices bouncing off the 23.6% Fibonacci retracement level before dropping further.
The key support level at $0.05419 was breached on November 12, signaling that more selling pressure could be ahead for TRON. At this point, it is likely that prices will continue to decline toward the next support level at $0.05200 if the bears are able to maintain their momentum. However, bulls could attempt a rebound near major support levels in case of further declines.
TRON prices have traded in a range of $0.05306 to $0.06000 over the past few days and it remains to be seen whether they will continue dropping, or if bulls will step in and push prices higher once again.
The moving average lines are also providing mixed signals, with the short-term 50-day EMA line trading above the longer-term 200-day EMA line. This indicates that there could be some volatility in TRON prices over the next few days as we see which direction markets will take next.
The overall sentiment across the cryptocurrency market continues to be bearish, with TRON currently trading at its lowest level since October. The short-term 50-day and 200-day moving average lines suggest that there could be some volatility in TRX prices over the next few days, although traders should watch key technical indicators like RSI and candlestick patterns for trading opportunities.
