TRXUSD has been stuck in a tight range for the last two days. However, recent price action suggests the Tron price may be about to break out.
TRX, which focuses on decentralizing content sharing, has been under pressure in the last two weeks. Many digital assets have absorbed the recent weakness in the sector and found a bid again. TRX is sadly not one of them, and the Tron price has failed to recapture the buying interest it saw earlier in the month.
This year has been a productive one overall for TRX holders. On the 16th of April, the Tron price traded as high as $0.18440. This was an increase of 650% since the start of 2021.
Since reaching that high, trading conditions have been extremely volatile, and the TRX price has fluctuated wildly, in a wide range. The current $0.11630 has the price pinned between two trend lines. One of which is supporting the price, another offering resistance.
When the price range contracts, often, a large move follows when it breaks out of the narrowing channel.
TRX Technical Outlook
Looking at the 4-hour chart, we can see that the price bounced from the support of a rising trend line in place from the March $0.52500 low. This line is currently at $0.10950.
The rally was capped at $0.12000 by a descending trend from the 7th of May high at $0.1700. The Tron price is again attempting to test the upper bound.
If the market can clear the resistance of the trend, it looks likely that the next stop will be $0.13000, with the potential to extend towards the 5th of May high $0.14900.
However, if the bounce fails and the price slips below support at $0.10950, there is potential for stop-loss selling to push TRX lower. In this case, the 23rd of April low at $0.90000 would be a logical target.
I hold a long bias on the Tron price overall but would only advocate buying on clearance of the descending trend line. Buyers with a low-risk profile could then place stops below the $0.10950 level.