• 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.

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Shiba Inu, one of the so-called “Dogecoin killers,” signals a hot crypto summer

Shiba Inu, one of the so-called “Dogecoin killers,” signals a hot crypto summer

Shiba Inu (SHIB) price is set to start an outperformance after the crypto winter that put investors and bulls in hibernation since March of this year. As more signs point to a turnaround, it is time to put money to work for investors as price action gets underpinned, with $0.00001100 aligning as the line in the sand and the monthly S2 support level as additional support.

More Shiba Inu News

Do Kwon in trouble as Korean police urges Upbit, Bithumb, Coinone, Korbit and Gopax to freeze Terra’s assets

Do Kwon in trouble as Korean police urges Upbit, Bithumb, Coinone, Korbit and Gopax to freeze Terra’s assets

Do Kwon faces legal proceedings in South Korea while endorsing a revival plan to fork Terra with a new token, excluding TerraUSD. On Wednesday, South Korean authorities are scheduled to meet cryptocurrency exchanges Upbit, Bithumb, Coinone, Korbit and Gopax after instructing them to freeze Luna Foundation Guard assets. 

More Terra News

Where Ethereum price will go as it prepares for bullish breakout

Where Ethereum price will go as it prepares for bullish breakout

Ethereum (ETH) price is set to jump 18% in value if a tailwind persists throughout the trading day. Although the ASIA PAC session saw some dark clouds forming over disappointment at the Chinese government’s support package and this pushed Asian shares to the downside.

More Ethereum News

Identifying an opportunity to time SafeMoon’s breakout

Identifying an opportunity to time SafeMoon’s breakout

SafeMoon price seems to be making a comeback after crashing for nearly five months. This downswing formed a base around a significant support level and has bounced back exponentially. For now, investors can expect SAFEMOON to continue this ascent until it tags a critical resistance barrier.

More SafeMoon News

Bitcoin: The last rebound before capitulation

Bitcoin: The last rebound before capitulation

Bitcoin is showing bullish signs in the lower time frames, which can be taken advantage of by traders in the next couple of days. But looking at BTC from the higher time frames suggests that the bottom is not in yet.

Read full analysis

BTC

ETH

XRP