TRON price could pull a 180 on bears and trigger a 60% rally soon
- TRON price is consolidating inside a descending triangle that forecasts a 60% move to the downside.
- However, buyers are not budging and could pull a 180, triggering a bullish breakout above $0.0879.
- A weekly candlestick close below the descending triangle’s base at $0.0581 will invalidate the bullish thesis for TRX.
TRON price has been stuck trading inside a massive bearish pattern for more than a year. Although TRX came very close to triggering a bearish breakout, buyers stepped up and reversed the trend. If this development continues, there could be a bullish breakout for the altcoin.
TRON price tries the impossible
TRON price action between March 22, 2021, and October 5, 2022, has formed four lower highs and four equal lows, which reveals a descending triangle setup when these swing points are connected using trend lines.
The technical formation forecasts a 60% downswing to $0..0237 on the breakdown of the $0.0581 support level, which is obtained by measuring the distance between the first swing high and swing low and adding it to the breakout point at $0.0581.
TRON dropped roughly 18% between August 15 and September 26 and tagged the descending triangle’s base at $0.0581. However, the sellers did not have the oomph to push it lower, but buyers, on the other hand, made a comeback and reversed this trend.
As a result, TRX rallied 8.3% and is currently hovering at $0.0631 and could continue on this path until it sweeps equal highs at $0.072. This move would constitute a 15% gain and is likely where the upside is capped for the TRON price.
However, a weekly candlestick close above the descending triangle’s hypotenuse would constitute a bullish breakout. This series of events could trigger a 60% run-up to $0.115, depending on the market conditions.
TRX/USDT 1-day chart
While things are looking up for TRON price, a weekly candlestick close below the support level at $0.0581 will trigger a bearish breakout from the descending triangle and invalidate the ongoing bullishness.
Although the forecast is an extremely bearish one, market participants can expect a minor bounce around the immediate support level at $0.0450.
Note:
The video attached below talks about Bitcoin price and its potential outlook, however, this is still relevant as it is likely to influence TRON price.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
