Tron was previously consolidating inside a symmetrical triangle pattern but is starting to break below support to indicate that sellers are taking over. Price is also forming a descending channel to signal that bearish momentum could stay on.
The 100 SMA still seems to be above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, there might still be a chance for support areas to hold. The price is currently testing the mid-channel area of interest and may bounce back to the top.
RSI is heading lower, though, so sellers have the upper hand at this point. The oscillator is nearing the oversold region to indicate that bears could be exhausted soon, allowing buyers to take over and spur a bounce. Stochastic hasn’t quite made it to the oversold region yet, so there may be some selling pressure left, but the oscillator appears to be bottoming out.
The anticipation for the BitTorrent token (BTT) airdrop appears to be fading as the TRON Foundation announced that this will go on until February 2025. Furthermore, the monthly airdrop will get bigger as time goes on, increasing once every February.
With that, traders might be liquidating some of their holdings for the time being and possibly holding out for a better price to jump in before the next airdrop. As a spokesperson told CoinDesk:
Think of Tron and BitTorrent like a razor and a blade. You need both together to create a new internet economy driven by decentralization. We are seeding BTT to deliver a marketplace of innovations and applications across the web.
Other cryptocurrencies have been chalking up decent gains over the past few days, which might also explain why traders are liquidating some of their Tron holdings in favor of the likes of Bitcoin.
Images courtesy of TradingView