TRON (TRX): Anticipating the Resolution of Symmetrical Triangle

October 20, 2020   TRON

After months of inexpressive bullish price action, TRON (TRX) had performed a decisive break outside the boundaries of a huge descending triangle that had been forming for nearly a year.

A secondary uptrend could erupt after the breakout confirmation


Frankly speaking, TRX has become something of a surprise for many traders because of the intensity with which the price had taken on the macro resistance at $0.024, which we predicted to be the point of the breakout from the multi-month descending triangle formation.

1-week TRX/USDT chart

On the weekly chart above, we see a textbook example of resistance conquest that came on the back of the rising bullish volume and the corresponding momentum, confirmed by MACD and RSI. Then TRON has had a traders’ remorse that only confirmed the new price level, upon which the price has literally exploded to the upside and reached $0.05, a 96% gain in a week, though it was immediately rejected back to $0.31, at which point, the September dump has occurred and dragged the price down by 20.2% against USD, 28.5% against BTC, and 24.8% in the ETH market.

TRON is perceived by many as a blockchain network that is rival to Ethereum in terms of its dApp developing properties, but TRX has been losing to ETH on all time scales: - 19% in a year and - 8.57% in the past 7 days, and clearly appears more bullish on the comparison chart below.

TRX/ETH comparison chart

Here we see that the price has found a resilient support area at $0.025, as it has already tested it three times, which is more than enough to consider it the potential point of reversal, following weeks of selling pressure that drove TRX inside the symmetrical triangle, which is generally perceived as a bullish continuation pattern.

The showings of key indicators lead us to believe that TRX is going to break that symmetrical triangle to the upside in the next week or two.

  • MACD remains considerably bullish, even though it has already curled to the downside after meeting with the overbought extreme. However, the flow of this indicator suggests that the sellers don’t have enough power to force the bearish crossover, so we are likely to see the main line bouncing off the signal one, which would entail the uptrend continuation;
  • The Accumulation/Distribution indicator is what gives us the biggest assurance in the upcoming breakout, as we see it reversing to the upside upon hitting the floor at -40B. It suggests that the buyers are regaining the initiative that should convert into a strong push to the upside, with the nearest price target being set at $0.04;
  • The Bollinger Bands, however, hint at the possibility of a quick move to the downside, in the direction of the middle line and the crossing between the macro resistance and the horizontal resistance (colored blue) at $0.022, before making the predicted upswing.

All in all, TRON probably has one of the most bullish outlooks among the other altcoins from the top 20, along with Ethereum and Polkadot, so we fully expect it to go above $0.05 by the tail end of the year.

Author: Alex Paulson for Crypto-Rating.com
Share
Pin
Send
Share
Share

Related Crypto Forecasts and Analytics




Top upcoming ICOs

ICOs Rating Days left
1 2local 5 6
2 SerenitySource 5 35
3 Geco.one 5 35
4 Tycoon 5 36
5 DogData 5 36
6 Pawtocol 4.9 7
7 Curate 4.9 28
8 Ledder 4.9 36
9 IdeaFex 4.9 569
10 BitWings 4.8 35

ICOs rating

Top Cryptocurrencies

Сryptocurrency CVIX Price Change, 24h
Bitcoin 64 $18 731.90 2.47%
Ethereum 57 $584.53 -4.78%
XRP 85 $0.631992 -1.19%
Tether 1 $1.00 -0.04%
Bitcoin Cash 36 $336.38 0.35%
Chainlink 60 $15.18 -3.50%
Litecoin 83 $86.11 -4.16%
Cardano 58 $0.160109 -5.93%
Polkadot 56 $5.48 -6.07%
Binance Coin 29 $32.74 -0.67%

Cryptocurrencies rating

Top Crypto Brokers

Broker Status
1 FIBO Group information
2 XM information
3 OctaFX information
4 101investing information
5 T1Markets information
6 InvestLite information
7 Orbex information
8 easyMarkets information
9 LH Crypto information
10 USGFX information

Brokers rating

Top Crypto Exchanges

Exchange Volume change, 24h
1 Binance 36.37%
2 ZG.com 2.65%
3 HBTC 13.25%
4 CITEX 11.02%
5 TAGZ Exchange 11.50%
6 Bidesk 14.76%
7 IDCM -11.63%
8 Bitribe 17.13%
9 Binance.KR 33.14%
10 Chiliz 16.90%

Exchanges rating