Tron (TRX) Price Watch: Major Correction Taking Place

Tron Price Key Highlights

  • Tron has tumbled to the bottom of its descending channel on the 4-hour time frame but support is still holding.
  • A pullback could take Tron price up to the channel resistance again and the inflection points might keep gains in check.
  • Technical indicators are showing that bearish pressure is still in play.

Tron price is finding some support at the bottom of its channel, but this might just be a pullback before more sellers return.

Technical Indicators Signals

The 100 SMA is still below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. In addition, the gap between the moving averages is widening to reflect strengthening selling pressure.

The 100 SMA also lines up with the mid-channel area of interest around 0.02000 so it could serve as the closest ceiling. From there, Tron could pull back to the 38.2% Fib at 0.02583 then the 50% retracement level at the channel resistance and 200 SMA dynamic resistance. A larger correction could last until the 61.8% level at 0.03172.

TRXUSD Chart from TradingView

RSI is still heading lower to indicate that sellers have the upper hand and could push price lower from here. A test of the swing low around 0.01630 could be underway and a break below this could ensue a steeper slide.

Stochastic is also pointing down but nearing oversold levels to indicate exhaustion among sellers. Turning back up could bring buyers in and lead to a continuation of the pullback. Price also needs to move past the current short-term consolidation to confirm that a larger retracement is in order.

Cryptocurrencies are currently being bogged down by news of the SEC’s rejection of a number of bitcoin ETF applications. While not directly tied to Tron, this still represents a setback for the industry when it comes to getting a thumbs-up from regulators.

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