- TRX price has formed lower highs and lower lows to create a descending channel on the 4-hour chart.
- Price is bouncing off support and may be due for a correction to the top, which lines up with the Fib levels.
- If this area holds as resistance, Tron could resume the drop to the swing low or lower.
Tron could be due to resume its downtrend if the area of interest around 0.0600 holds as resistance.
Technical Indicators Signals
The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. This suggests that the selloff is more likely to resume than to reverse.
The 100 SMA lines up with the 50% Fibonacci retracement level at 0.0610 while the 200 SMA is in line with the channel resistance around 0.0660. This also coincides with a former support level that might now hold as resistance.
RSI is on the move up to signal that sellers are taking a break and letting buyers take over from here. Similarly stochastic is heading north so Tron might follow suit. Also, the long-wicked candle on the bounce off the 0.0400 level suggests that buyers were waiting with limit orders at that level.
Tron continues to wait for more updates on the mainnet launch and investors are getting antsy. For now, the cryptocurrency industry is being bogged down by news of the hack on a South Korean exchange, even though only smaller altcoins were affected.
Meanwhile, the attention could shift to the dollar with the US CPI and FOMC decision coming up. An interest rate hike is expected but the CPI report could provide more context on any tightening biases. Weaker than expected inflation figures could downplay hawkish hints while strong results could support the idea of two more hikes later this year.