Beware of the Incoming TRON (TRX) Price Plunge

7 December 2022, 17:00 GMT+0000
Updated by Geraint Price
7 December 2022, 17:00 GMT+0000
In Brief
  • TRX is following a long-term descending resistance line.
  • It broke down below the $0.055 horizontal level.
  • TRX broke down from an ascending wedge.
  • promo

The TRON (TRX) price forecast is considered bearish due to a breakdown from a long-term horizontal level and bearish RSI readings.

TRX is the native token of the Singapore based TRON blockchain, created by Justin Sun. The TRON ecosystem contains various other digital assets.

The weekly time frame technical analysis for TRON gives a bearish outlook. The TRX price decreased below a descending resistance line since reaching its 2021 high in April. 

The line has caused several rejections. It was the catalyst for a significant drop on Nov. 7, breaking down from the long-term $0.055 support area. A similar decrease was seen throughout the rest of the cryptocurrency market. Moreover, this caused a weekly RSI crash below 50, another bearish sign.

Due to this breakdown, the TRON price forecast is considered bearish until the price reclaims the $0.055 resistance area. Currently, this seems unlikely.

/Related

More Articles

The resumption of the decrease toward the next support area at $0.036 is the most likely scenario. Conversely, a weekly close above $0.055 would invalidate this bearish TRON price forecast.

TRON (TRX)  Price Weekly Resistance
TRX/USDT Weekly Chart. Source: TradingView

TRON Price Short-Term Breakdown

The six-hour chart aligns with the weekly one, providing a bearish outlook. 

The main reason for this is the breakdown from an ascending wedge over the past 24 hours. The wedge had been in place since Nov. 14. The breakdown was combined with an RSI decrease below 50 (red icon). 

As a result, the downward movement could continue toward $0.049-$0.05, the 0.5-0.618 Fib retracement support levels. 

Due to the long-term bearish readings, the level could provide a short-term TRON price relief rally, but not a full-blown bullish reversal. 

As outlined previously, a decisive movement above the $0.055 resistance area would invalidate the bearish TRON price projection.

For BeInCrypto’s latest crypto market analysis, click here.

Disclaimer: BeInCrypto strives to provide accurate and up-to-date news and informationbut it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

Disclaimer

BeInCrypto strives to provide accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.