Tron made a strong bounce off the bottom of a symmetrical triangle pattern that’s forming on the 1-hour time frame. However, the resistance held quite well too as the move was quickly faded.
The 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, support is more likely to break than to hold or resistance is more likely to hold than to break. The price might simply keep bouncing within the triangle formation as the moving averages oscillate.
RSI is on the move down, though, suggesting that bears could take Tron for another test of the bottom around 0.0260. Stochastic is already indicating oversold conditions or that sellers are exhausted and that buyers could take over. A breakout in either direction could last by the same height as the triangle, which spans 0.0220 to around 0.0340.
Tron is one of the better-performing coins once again as it has been up over 10% in the past 24 hours as of this writing. The successful sale of the BitTorrent token (BTT) is being seen as the main catalyst for the climb, and the demand for Tron is supported as the airdrop was confirmed.
Founder Justin Sun tweeted:
It is official: In the BNB session, all 23.76 billion BTT were sold to token sale participants within 13 minutes and 25 seconds. Meanwhile, in the TRON session, all 35.64 billion BTT were sold within 14 minutes and 41 seconds.
This was followed by a listing of BTT on Binance, thereby opening it to more traders and stronger demand. BTT is up nearly 6% of its launch price, which adds to the market interest in the token.
Binance also distributed an airdrop of 5,000 BTT to users eligible to buy but unable to participate in the sale, so investors are likely rushing in to hold either this token on Tron in anticipation of more.
Images courtesy of TradingView