• TRON price shaping the handle of a cup-with-handle base on the weekly chart.
  • TRX daily Relative Strength Index (RSI) remains overbought but below the extreme reading of 83.06 plotted on August 16.
  • TRON price respects July ascending trend line on August 19 with a 4.03% bounce.

TRON price has rallied in step with the broader cryptocurrency market since the July 20 low, recording a 100% gain at the August 16 high of $0.098 and confidently maintaining support above the July ascending trend line. Despite the noteworthy rally, TRX has reached a resistance level that corresponds with the April lows while flashing an extreme overbought reading on the daily RSI. The preconditions for a deeper pullback are coming into focus.

TRON price is an opportunity wrapped in mystery  

From a long-term perspective, TRON price has been plotting a cup-with-handle pattern since the January 2018 high. The April-July cyclical correction has shaped the handle. The handle low is defined by superior support attributed to the confluence of the 50-week simple moving average (SMA) and the 2020 high of $0.053. Now, TRX is aiming to complete the right side of the handle in the coming months.

The measured move target of the cup-with-handle base is $0.370, putting TRON price above the left side of the base at $0.350.

TRX/USD weekly chart

TRX/USD weekly chart

Currently, TRON price holds the 200-day SMA at $0.078, and the July ascending trend line but is confronting the resistance established by the April lows and the TRX rebound highs that followed the May 19 collapse around $0.095.

The test of the TRON price range while hitting an extreme overbought condition does raise the probabilities of a deeper pullback, possibly down to the 50-day SMA at $0.067. It would create a new entry price for TRX speculators and the runway for the altcoin to resume the pursuit of a breakout from the cup-with-handle pattern.

TRX/USD daily chart

TRX/USD daily chart

The presence of the July ascending trend line and 200-day SMA may prevent a deeper pullback for TRON price, enabling a correction in time versus price. Once TRX closes above the August 16 high of $0.098 and the high of the noteworthy price resistance at $0.099, it will not encounter any serious technical obstacles until the 38.2% Fibonacci retracement of the 2018-2020 secular correction at $0.137.

The 50% retracement at $0.178 and the handle highs will also be a challenge for TRON price if the 38.2% retracement is shattered. It would represent a 100% gain from the current TRX price.

TRON price is at an inflection point as it battles a challenging range with an overbought daily RSI. Subsequently, the mystery is whether TRX can beat the resistance mentioned above without a meaningful pullback. Or, does it need to refresh the price structure and technical indicators to master a sustainable rally to the handle highs and a 100% return.

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

BNB drops by 4% as Binance confirms potential $586 million exploit on BNB Chain

BNB drops by 4% as Binance confirms potential $586 million exploit on BNB Chain

The world’s largest cryptocurrency exchange is observing an attack on its token chain and cryptocurrency. In response, Binance Coin’s price began falling on the charts making the investors highly concerned.

More Binance Coin news

Why the MATIC price could fall toward $0.60 in October

Why the MATIC price could fall toward $0.60 in October

MATIC price has rallied 20% since the middle of September. Polygon price faces significant resistance near the upper bounds of a descending trend channel. Invalidation of the bearish thesis is a breach above $1.05.

More Polygon news

XRP price is setting up for a sharp decline toward $0.40, here's why

XRP price is setting up for a sharp decline toward $0.40, here's why

XRP price could witness a sell-off into the mid $0.40 levels if the bulls hurdle through the $0.50 barrier. XRP's failure to maintain momentum over the $0.50 threshold may result in Ripples' demise. Invalidation of the bearish thesis is a breach above $0.51.

More Ripple news

MakerDAO allocates $500 million in DAI toward US Treasuries and Corporate Bonds

MakerDAO allocates $500 million in DAI toward US Treasuries and Corporate Bonds

Partnering with Monetalis, MakerDAO will be using its stablecoin reserves to invest in US Treasuries and corporate bonds. $1 million has been set for the pilot transaction, following which the debt ceiling will rise to $250 million and $500 million.

More Cryptocurrencies news

Bitcoin: BTC’s Q3 close and what to expect in Q4?

Bitcoin: BTC’s Q3 close and what to expect in Q4?

Bitcoin price has developed a bullish divergence with RSI, hinting at more upside. Despite the optimistic technicals, investors should expect volatile swings before the end of the third quarter of 2022. 

Read full analysis

BTC

ETH

XRP