On July 25, 2019, the Tron price reached a low of 229 satoshis. It traded in a range between 30 and 40 satoshis until July 31. A downward move ensued. The price has been decreasing since. On August 5, it reached lows of 187 satoshis.
When will the downward move come to an end? Continue scrolling if you want to know the answer.
For our previous analysis, click here.
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TRON Price: Trends and Highlights for August 5
- TRX/BTC is trading inside a broadening descending wedge.
- There is support at 160 and 70 satoshis.
- Daily moving averages rejected a bullish cross.
- The RSI is at its lowest level in three months.
A look at the daily time-frame shows that TRX recently broke down from a significant support area.
The support area is found at 300 satoshis.
After the breakdown, the TRX price increased in order to validate it as resistance on July 22.
Additionally, two support areas are outlined.
They are found at 160 and 70 satoshis respectively.
A look at the six-hour time-frame shows that TRX has been trading inside a descending, broadening wedge since the beginning of July.
Both the resistance and support lines have been touched three times, increasing their validity.
At the time of writing, the TRX price was trading slightly above the support line of the wedge.
If it continues to decrease at the rate predicted by the wedge, it should reach the first support area within the next week.
A look at the daily moving averages (MA) supports this possibility.
The 10- and 20-day MAs were very close to generating a bullish cross on July 28.
However, the cross was rejected. This is a bearish sign, often indicating that the reversal was unsuccessful and suggesting further price decreases.
The 10-day MA is currently falling, providing resistance to the price.
The RSI has been showing some bullish signs, but not nearly enough to compensate for the overall bearish sentiment.
Since the creation of the wedge, the RSI has been generating bullish divergence.
It created a triple bottom pattern at 28, while the price was decreasing.
However, it seems as if the RSI has fallen below this level.
This is the lowest value it has reached since May 13.
Additionally, it looks as if the bullish divergence trend has been broken.
Therefore, we would expect the Tron price to decrease until it reached the support area.
Tron Price Summary
The TRX price is trading inside a descending broadening wedge.
According to our analysis, it is likely to continue decreasing at the rate predicted by the wedge until it reaches the support area outlined above.
Do you think the TRX price will begin an upward move? Let us know in the comments below.
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.
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