- Tron has formed lower highs and higher lows to create a symmetrical triangle pattern.
- Price just bounced off the top and may be due for a test of support soon.
- Technical indicators suggest that there’s a chance for support to break and lead to a selloff.
Tron is consolidating in a symmetrical triangle pattern and might be due for a break below support.
Technical Indicators Signals
The 100 SMA is below the longer-term 200 SMA to signal that the path of least resistance is to the downside. In other words, support is more likely to break than to hold.
Price is currently testing the 100 SMA dynamic inflection point and it seems to be holding as support, though. Also, the gap between the moving averages is narrowing to signal slowing bearish momentum. An upward crossover could even draw buyers back in.
RSI is still pointing down to confirm that sellers have the upper hand and could push Tron price to the bottom of the triangle around 0.0350. Stochastic is also moving south so Tron could follow suit, but the oscillator is also nearing oversold levels to indicate bearish exhaustion. Turning higher could bring bullish pressure in and lead to a test of the resistance at 0.0380.
A break below support could spur a drop that’s the same height as the triangle pattern, which spans 0.0310 to 0.0420. Similarly a break past the top could lead to a rally of the same size.
Tron has been keeping its head afloat these days thanks to confirmation that the TRON Foundation did acquire Bittorrent. Although the details of the acquisition and company plans are still fuzzy, there seems to be enough investor optimism surrounding this to prevent further declines in Tron price.
However, the dollar is also proving to be a tough contender as easing trade tensions and expectations for a strong Q2 GDP are currently propping it higher. Profit-taking in recent rallies has also kept a lid on Tron price gains lately.