The TRON price outperformed much of the market yesterday, adding double-digit gains. So could this be the start of a comeback for TRX?
TRON is last trading at $0.06680, up $0.001230 (+1.97%).
Some confidence is slowly returning to the battered and bruised cryptocurrency market. Digital assets have been on the back foot for over a month. However, there are signs that buyers are returning to cryptos. This suggests the Tron price has weathered the storm and see brighter days ahead.
TRX technical outlook
The daily chart shows the Tron price is on its way to printing its third consecutive green candle. Ordinarily, this may not be considered much of an achievement. However, our expectations are significantly lower in the current climate than at the start of the year.
There are some encouraging developments. The price bounced perfectly from the support of a descending trend line during Tuesday’s rout. The support level at $0.0445 forms the lower edge of a parallel channel which has been in place from the May 19th low.
Additionally, the Relative Strength Index (RSI) appears to be breaking out from the previous oversold conditions, indicating the rally may have more room to run.
The Tron price is approaching the 200 DMA at $0.0676. If TRX clears this resistance, the outlook will improve dramatically. I would consider this to be the biggest test of the recovery.
If the price clears the 200 DMA, the next stop is the upper end of the descending channel at $0.0767. Suppose the momentum carries beyond this threshold, TRX would be firmly back in bull market territory.
However, before we get ahead of ourselves, we should remember that for the Tron price to to sustain an extended recovery, it will be reliant on the broader market.
Bitcoin is once again nudging $35,000 following its weakness earlier in the week. Ethereum has also recovered the $2,000 threshold. And notably, ETH has remained above its critical 200-day moving average at $1,899.00, which might indicate the start of a bullish trend reversal.
So the early signs are positive. But cryptocurrency sentiment remains fragile and subsequently, markets are vulnerable to another sell-off on the first signs of negativity.
If TRX trades below Tuesday’s low of $0.4461, the bullish outlook would be terminated.