October 5, 2022


For the past six weeks, Tron’s [TRX] The range was limited in the range of $0.66-$0.07. The drop from the $0.07 high confirmed a bullish continuation pattern on the 4-hour time frame.

The recent drop reinforced short-term bearish attempts to pull TRX towards its 200 EMA support (green).

Moreover, with immediate support at the yet-to-be-tested $0.067 zone multiple times, bulls could target a patterned breakout in the coming sessions. A jump above the 20 EMA could indicate a continued short-term recovery. At press time, TRX was trading at $0.06843.

TRX 4 Hour Chart

Source: TradingView, TRX/USDT

TRX recorded steady growth after recovering from the $0.063 baseline. The recovery from its long-term support involved a classic bullish flag on the chart.

However, the sellers revealed their short-term advantage, especially with the price action falling near the 20/50 EMA. But with the 200 EMA coinciding with the $0.067 support, the altcoin has a better chance to push the rally.

An additional upside push can help TRX break out of the current pattern. In this case, the $0.0709 signal may limit buying efforts. Traders/investors should look for recovery signals from this area.

In the event of a death cross on the EMAs, the alt could experience a short-term decline. Here potential targets were in the $0.065-$0.066 range.

Logic

Source: TradingView, TRX/USDT

The Relative Strength Index (RSI) tried to cross the midline while depicting a rather neutral stance. Buyers needed to break the 50-point resistance to increase the chances of a bullish breakout on the chart.

Further, On-Balance-Volume (OBV) maintained its immediate support despite lower price action lows. Thus, revealing a slight upside.

Also, Accumulation/Distribution made higher lows as it diverged higher with price. However, the ADX showed an essentially weak directional trend for TRX.

conclusion

Given the bullish pennant structure approaching the 200 EMA support, TRX could see a bounce before facing stiff resistance. The objectives will remain the same as above.

However, investors/traders should consider Bitcoin’s movement and its impact on the broader market perception to make a profitable move. An analysis of this would help traders predict the likelihood of any upside cancellations.



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