Tron was previously trending higher inside an ascending channel on the 1-hour time frame but has recently broken below support to signal that a reversal is due. Price also seems to be hitting resistance at a newly-forming descending trend line.
Applying the Fibonacci retracement tool on the breakdown indicates potential pullback areas. The 61.8% level is closest to the broken channel bottom and the short-term descending trend line, so this might be the line in the sand for a retest.
The 100 SMA is crossing below the longer-term 200 SMA to indicate that the path of least resistance is now to the downside. In other words, the selloff could gain more traction from here. Nearby resistance is also located at the 38.2% Fib around 0.0260 or the 50% level at 0.0263.
Stochastic is already indicating oversold conditions or that sellers are tired and buyers might take over. RSI has pulled up from the oversold area to signal that bullish momentum is about to pick up. Stronger buying pressure could take price beyond the Fibs and area of interest and allow Tron to resume the uptrend.
Anticipation for the BTT token was seen as the main factor that sustained the climb earlier on, but rumors that the SEC could treat Tron as a security opened up a host of questions. This was spurred by a tweet from the CEO and co-founder of ChaChing Wallet Thomas Schultz:
Just heard from a SEC insider
Literally, his first comment was:
Stay away from Tron
I’m not kidding.
Furthermore, he explained:
Tron is running a viscous marketing campaign to get tons of people to buy their cryptocurrency
The influence is on their behalf & thus holds them liable
Justin Sun has absolutely zero chill with reporting on where Tron sits on CMC
This isn’t the sign of a fruitful project.
It is important to note, however, that no corroboration of Schultz’s claims has yet to come to light. Unless and until it does, the wider crypto community is treating the claim as more FUD than fact.
Images courtesy of TradingView