The TRON price is running into trouble at major resistance. If it punches through, it pops. But if it doesn’t, it drops. What’s more likely for TRX?
TRON (TRX) is pretty much unchanged this morning. The last price of $0.0738 is just 0.33% lower on the day.
Following July’s $0.0486 low trade, TRX has been trending higher. And by Sunday, it had gained almost 60% to a two-month high of $0.0775. However, two key moving averages have so far put the brakes on the rally. And for TRX to break out on the upside, it must first deal with this significant resistance level.
TRX price forecast
Turning to the daily chart, it’s clear the TRON price has seen supportive buying on dips towards $0.0500. Declines in June and July were both reversed after the price broke below this threshold.
However, the rebound in June fell short at the important 200-day moving average. Similarly, the latest rally is also struggling with this long-term indicator.
The 200 DMA at $0.0075 is joined by the 50-day average at $0.077, creating a forceful barrier. Although, the positive thing about strong resistance levels is if they are broken, the price often flies.
On that basis, if the TRON price successfully hurdles $0.077, it could extend higher to the mid-April low of $0.1031, around 40% above the current level.
On the other hand, if TRX fails here, it opens a trap-door to the 50 DMA at $0.0625. Furthermore, should this give way, the bears will aim to test the resolve of $0.0500 once more.
Notably, the Relative Strength is reversing from the weekend’s overbought reading of 73.59. Currently, the index stands at 67.57 but is rolling over, suggesting the rally is losing steam.
For the moment, the outlook is positive. However, the longer TRX stays below $0.777, the odds of returning to $0.0500 increase.
TRON price chart (Daily)
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