TRON Price Analysis: When Will TRX/BTC Make a Bottom?

At the time of writing, it was trading near 240 satoshis. Measuring from the aforementioned high on January 27, this is a decrease of roughly 70 percent. How long will TRX continue to decrease? Keep reading below in order to find out the answer. For our previous analysis, click here.

Tron Price: Trends and Highlights for July 15

• There is significant support near 200 satoshis.
• TRX/BTC is following a descending resistance line.
• It is trading inside a short-term descending wedge.
• There is a short- and long-term bullish divergence developing in the MACD and RSI.

Support Levels for the TRX Price

A look at the weekly time-frame shows that in August 2018, the TRX price made a low near 300 satoshis. Since then, it has not fallen below this level. However, in July 2019, the TRX price finally did so. The next support level is found near 200 satoshis. The price has not traded below this level since the beginning of 2018. A breakdown below this level could trigger a rapid TRON price decrease. Let’s take a closer look and see if that is likely.

Descending Resistance

Since reaching the 857 high on January 12, the TRX price has been following a descending resistance line. So far it has made several attempts at a breakout, most recently at the beginning of June 2018. A look at the RSI and the MACD suggests that the TRON price is likely to do so again in the future. A bullish divergence has been developing in both the RSI and the MACD since May 14. The divergence is significant, occurring in long-term time-frames and present in both indicators. However, the TRX price is not following any long-term support lines. Therefore, the price is free falling, making it hard to initiate an upward move. Let’s take a closer look in the short-term to see if the price is behaving differently.

Short-Term Wedge

Since reaching a high on June 24, TRX has been trading inside a descending wedge. The descending wedge is a bullish pattern, making price breakouts more likely. At the time of writing, the TRX price was trading slightly above the support line. Similar to the long-term view, the RSI and the MACD have been generating bullish divergence. They have been doing so since July 11. Combining this with the analysis from the previous section, it is likely that TRX will begin an upward move towards the resistance line at 270. If the TRON price breaks out from the short-term wedge, the longer-term resistance line can currently be found near 330 satoshis. At the current time, we cannot confidently predict a breakout above this level.

Summary

The TRX price recently decreased below 300 satoshis. The next significant support level is found near 200. A breakdown below it could trigger a rapid price decrease. However, the price is trading inside a short-term bullish pattern. An analysis of technical indicators suggests that the price will soon reach the resistance line of the pattern. What do you think will happen to the price of TRX? 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.