The Tron price has struggled in the past few weeks as the crypto industry consolidates. The TRX is trading at $0.062, which is its lowest level since May 24. It is also about 65% below the highest level this year and has a market capitalization of more than $4.7 billion and is the 25th biggest cryptocurrency in the world.
What happened? Like all cryptocurrencies, Tron has been affected negatively by the statement by the Federal Reserve. In its decision last week, the Fed decided to leave interest rates unchanged as most analysts were expecting. The bank also decided to leave its quantitative easing policy intact.
Investors were nonetheless surprised by the Fed’s statement that it will start hiking interest rates in 2023. Some analysts also believe that the Fed will hike rates in 2022 and start tapering this year. Historically, risk assets like cryptocurrencies tend to underperform in a tight monetary policy situation.
The Tron price action also mirrors what Justin Sun said in interviews with CNBC and Bloomberg last week. In the interview, he suggested that cryptocurrencies would continue consolidating in June and then break out in July. You can watch this interview below.
Tron price prediction
The four-hour chart shows that the TRX price has been in a tight range recently. As a result, the coin has formed a black descending channel. Indeed, the price is currently at the same level as the lower side of this channel. It has also moved slightly below the lower line of this channel.
The price has also dropped below the 25-day and 15-day moving averages (MA) while the two lines of the MACD have moved below the neutral line. Therefore, for now, the price will likely keep falling as bears target the next key support at $0.05. However, on the flip side, a move above the upper side of the channel will invalidate this prediction.
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TRX price chart
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