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Tron Price Prediction: TRX needs to hold this crucial support level to avoid a sell-off

  • TRX is trading at $0.024, just above a critical support level.
  • Tron is still down 50% since its 2020-high at $0.05 and continues declining.

After a massive price boost, thanks to Tron tapping into the DeFi market, the price of the digital asset has continued to decline significantly. The entire cryptocurrency market plummeted due to news about BitMEX being charged for illegal activities. Around $18 billion was wiped in market capitalization in the past 24 hours.

Will Tron succumb to the selling pressure?

Considering the overall weakness of the market, it seems that TRX is posed for further downside action. On the daily chart, the decentralized platform is trading right above a critical support level in the form of the 100-EMA at $0.024. 

TRX/USD daily chart

trx price

Back on September 21, TRX established a healthy support level at $0.24, defending it for three days. A bearish breakout below $0.024 and the 100-EMA will be significant and likely to push the digital asset down to $0.022. 

TRX/USD 1-hour chart

trx price

So far, TRX has bounced back up from a low of $0.024 to $0.0249 currently. Unfortunately, the last high was established at $0.026, which means that anything below this level will only represent a lower high, and the downtrend could continue. 

On the other hand, if the support level at $0.024 continues holding, we can see TRX climb at least towards $0.026 in the short-term. A longer-term price target would be $0.028 where the 50-MA stands on the daily chart. 

The MACD is on the verge of turning bullish on the 1-hour chart. The last time it did on September 29, the digital asset saw a 3% price surge over the next 24 hours. 

Author

Lorenzo Stroe

Lorenzo Stroe

Independent Analyst

Lorenzo is an experienced Technical Analyst and Content Writer who has been working in the cryptocurrency industry since 2012. He also has a passion for trading.

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