Tron Price Analysis: TRX/USD Chance to Buy on Retracements


Tron has been one of the stronger performers so far as price continues to move above an ascending trend line connecting the latest lows. Price is in the middle of a pullback and is approaching a near-term area of interest.

Applying the Fibonacci retracement tool on the latest swing low and high shows that the 61.8% level lines up with the former resistance turned support level around 0.0265. This also coincides with the 200 SMA dynamic inflection point that adds to its strength as support.

On the subject of moving averages, the 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse. The gap between the moving averages is also wide enough to signal that bullish momentum could stay on.

Volume is slightly elevated as the price has been swinging back and forth. Stochastic has already reached the oversold region to signal that sellers are tired and may let buyers take over from here. If so, the price could make its way back up to the swing high around 0.03100 and beyond.

TRX/USD Chart - TradingView

Tron has drawn a lot of market interest on the looming launch of its BitTorrent token (BTT) as this is widely expected to bring the coin to mainstream adoption. Founder Justin Sun’s tweets have also been doing a lot to spark interest and lead more investors to place bets.

With its recent rally, Tron has overtaken some of its rivals in terms of cryptocurrency rankings. These are usually followed by periods of strong market interest that could maintain its lead or push it further up. According to CoinMarketCap, Tron is now the top seventh largest cryptocurrency based on market cap.

Note that the BTT sale will last until February 3 and Tron holders will also receive BitTorrent tokens in a so-called airdrop this month.

Images courtesy of TradingView


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