TRON Price Analysis: How Did TRX/USD React to Today’s Turmoil?

On July 7, a rapid upward move began. However, it began to decrease the next day as the Chinese police entered the TRON offices in Beijing. You can click here for more information. What will happen next? Keep reading below and find out. If you would like to trade cryptocurrencies on our partner exchange, follow this link to get all signed up on XCOEX.

TRON Price: Trends and Highlights for July 8

• The TRX price is trading inside an ascending channel.
• The long- and short-term moving averages are bullish.
• It is trading inside a short-term horizontal channel.
• There is resistance near $0.04.

Long-Term TRX Price Action

Since reaching lows close to $0.012, the TRX price has been trading inside the ascending channel outlined below.

Both the resistance and support lines have been touched several times. At the time of writing, the TRON price was trading in the middle of the channel. According to the moving averages, it is more likely that it increases towards the resistance line.

In February, a bullish cross transpired between the 10- and 20-week MAs. Since then, the TRON price has been (mostly) trading above both MAs and has currently found support above the 10-day MA. Since there is no bearish divergence to warn of a reversal, it is likely that TRX is still in an uptrend.

TRON Price in a Horizontal Channel

In the short-term, the price is trading inside the horizontal channel outlined below. It reached a high close to $0.035 in the early hours of July 8. However, a rapid decrease took it to $0.033 in a span of four hours. This could have been as a result of the aforementioned news about the turmoil inside the TRON offices. If more negative news continues to surface, it is possible that they will have a damaging effect on the TRX price. Similarly to the weekly time-frame, the short-term MAs have also made a bullish cross. The TRON price is trading above both the 10- and 20-period MAs. While the recent decrease was significant, the price seems to have found support above the 10-period MA. What raises cause for concern for the upward move is the very low levels of volume on the recent increase. This could be an indication that buyers do not have significant strength and a breakout will not materialize in the near future. However, a breakdown still looks unlikely.

Reversal Areas

In case a breakout occurs, one resistance area is outlined below: The closest resistance area is found near $0.04, coinciding with the highs reached on June 25. Furthermore, the height of the channel projected at the breakout point also gives the same target, further affirming its validity.

Summary

The TRX price is trading inside a long-term ascending channel and a short-term horizontal channel. Both long- and short-term moving averages support continued price increases. However, the recent negative news could have a harmful effect on TRON price. Do you think the TRX price will break out from the horizontal channel? Let us know in the comments below.

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Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.  Images are courtesy of Shutterstock, TradingView.