Can Tron price buck the bearish trend with its bullish setup
|- Tron price is in a multi-year bullish pennant setup, hinting at a massive uptrend.
- A decisive move above the setup at $0.096 could trigger a 90% upswing to $0.185.
- If TRX produces a weekly candlestick close below $0.055, it will invalidate the bullish thesis.
Tron price has been in a massively bullish continuation pattern since the March 2020 crash. As TRX coils up between two trend lines, a breakout to the upside could trigger a money-doubling move.
Tron price maintains its bullish momentum
Tron price crashed 56% in a single weekly candlestick in the second week of March 2020, which was a black swan event due to COVID. The weekly candlestick, however, recovered and closed at 0.010 after recovering.
Since this point, TRX has rallied 2,615% up to its all-time high at $0.181 in the second week of April. This massive upswing forms a flag pole, which is the most integral part of the bullish pennant setup that it is forming.
After an all-time high, Tron price slid into consolidation between two converging trend lines that can be drawn along the higher lows and lower highs. This coiling up forms the pennant. This technical formation forecasts a 92% upswing, obtained by measuring the flag pole’s height and adding it to the breakout point.
Assuming Tron price breaches the pennant’s upper trend line at $0.096, the target would be $0.185, which would be a new all-time high. This outlook, however, is on a weekly time frame, so the crash that BTC just went through last week does not seem to have a strong effect.
TRX/USDT 1-week chart
While things are looking optimistic for the so-called “Ethereum killer”, a sudden spike in selling pressure and increase in correlation to BTC could spoil that.
If TRX produces a weekly candlestick close below $0.055, it will invalidate the continuation pattern’s bullish thesis by producing a lower low. In such a case, Tron price could crash 31% to revisit the $0.0383.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.