Tron Price Analysis: TRX/USD More Bullish Traction on BitTorrent Crypto Launch


Tron could be poised for more upside as it recently busted through a long-term descending channel to signal that a reversal is underway. Price has since formed a short-term triangle consolidation, which might be viewed as a continuation signal.

The 100 SMA is below the longer-term 200 SMA, though, indicating that the path of least resistance is to the downside. In other words, the selloff still has a chance at resuming. Then again, the price has moved above the 100 SMA dynamic inflection point, which means that it could hold as support from here.

Tron could be due to test the 200 SMA dynamic resistance at the 0.02500 mark next and a break past this could encourage more buyers to join in. The consolidation looks like a flag and if so, the resulting rally from an upside break would be of the same height as the mast, which spans 0.01200 to 0.02200.

RSI is on the move down after recently turning lower from the overbought region, though. This signals that sellers are just returning and could keep further gains in check. In that case, a pullback to the broken trend line or the 100 SMA could take place before more buyers join in.

Stochastic is also heading south so Tron might follow suit while buyers are taking a break and allowing sellers to take over. Both oscillators have a lot of ground to cover before reflecting oversold conditions, which means that bears could stay in the game for a bit longer.

TRX/USD Chart - TradingView

However, Tron has a lot to look forward to since BitTorrent is reportedly gearing up to launch its own cryptocurrency. Recall that founder Justin Sun recently acquired this platform, which means that the coin to be released would be based on the Tron network.

In a press release, Sun announced:

In one giant leap, we can introduce blockchain to hundreds of millions of users around the world and empower a new generation of content creators with the tools to distribute their content directly to others on the web.

Images courtesy of TradingView


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