TRON Technical Analysis: TRX in consolidation ahead of an imminent breakout to $0.04
|- TRON rebounds from support at $0.0275 but hit a wall marginally under $0.03.
- The uptrend back to $0.04 will depend on the bulls' ability to sustain price action above $0.03.
TRON tanked by 30% from the November peak on Thursday as a massive selloff swept across the cryptocurrency market. The smart contract managed to embrace support at $0.0275 before a minor reflex recovery came into the picture. For now, resistance at $0.03 seems to be delaying the expected recovery.
TRON begins a new consolidation phase
Following the breakdown, TRX appears to have found some semblance of stability between the 100 Simple Moving Average's immediate support on the daily chart and the hurdle at $0.03. The Relative Strength Index reinforces the probable sideways trading amid the leveling above the midline.
A break above the seller congestion zone at $0.03 might call for more buy orders and elevate TRX to highs close to $0.04. Moreover, keeping the immediate support at the 100 SMA will ensure that stability is maintained ahead of a breakout.
TRX/USD daily chart
The 4-hour chart doubles down on the possibility of the sideways trading taking precedence in the coming sessions. The price is dancing between the support at the 100 SMA and the seller congestion at the 50 SMA. The RSI has also reinforced the potential consolidation in the shorter timeframe.
TRX/USD 4-hour chart
However, it is essential to note that the uptrend will be protected and even sustained if TRON closed the day above the 100 50 SMA on the 4-hour chart. On the other hand, the immediate support at $0.028 must also be guarded at costs to avert potential losses to the 200 SMA and the primary support at $0.026.
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