The Tron price is bouncing back after it crashed to the lowest level since April 25 in the overnight session. The TRX is trading at $0.1270, which is about 27% above its lowest level today. The currency has a market capitalization of more than $9 billion, according to data compiled by CoinMarketCap.
What happened: Tron and other altcoins declined during the overnight session as many investors started to take profit following a relatively strong rally. Ethereum dropped below $4,000 while Bitcoin fell by more than $3,000 points.
In addition to profit-taking, investors are anticipating new regulations as the number of hackings in the United States continue rising. For one, there is an ongoing hack of the Colonial Pipeline. With the hackers demanding payments in crypto, regulators could tighten the rules. Also, Tron and other cryptocurrencies are falling as traders wait for the upcoming inflation data from the United States.
Tron price prediction
The daily chart shows that the Tron price has been on a strong upward trend since 2020. Recently, though, it has found some resistance after it reached an all-time high of $0.1800. The currency has moved below the 25-day and 50-day moving average, signalling that bears are prevailing. It has also formed what looks like a double-top pattern whose neckline is at $0.090.
Therefore, at this point, there are two likely scenarios. First, the currency could bounce as bulls target the upper side of the descending trendline. The other scenario is where the price retests the lower line. A bullish trend will only be validated if the price moves above the upper trendline. Similarly, a bearish breakout will be validated if it moves below the lower line.