TRON Price Analysis: TRX/USD Might Soon Initiate A Breakdown

At the time of writing, the TRON price was trying to find support near $0.032. In order to try and predict its future movements, we are going to analyze the price on different time-frames alongside technical indicators.

Tron (TRX) Price: Trends and Highlights for Jun 6

• The TRON price reached a high on Jun 2.
• It is trading inside a descending triangle.
• There is bearish divergence developing in the RSI.
• The moving averages have made a bearish cross.
• There is support near $0.03.

TRON Price: Descending Triangle

The price of TRX/USD is analyzed at one-hour intervals in order to trace its current pattern. On Jun 2, the TRON price reached a high of $0.0411. A rapid downward move ensued. On Jun 4, the price made a low of $0.032. Since then, it has been trading inside the descending triangle outlined below:

At the time of writing, it was trading very close to the support line of the triangle. It is also nearing the point of convergence between resistance and support lines. Is a breakdown in store? Let’s look at some technical indicators and find out.

TRX Price: Moving Averages

The TRON price is analyzed at six-hour intervals alongside the RSI, the 10- and the 20-period moving averages (MA) below: On May 28, the TRON price reached a high of $0.037. It continued to increase and reached a higher high of $0.040 on Jun 2. During this period, the RSI generated successive lower highs. This is known as bearish divergence and often precedes price decreases. Furthermore, a bearish cross between the 10- and 20-period moving averages occurred on Jul 5. This often indicates that a downtrend has begun. Afterward, the 10-period MA offered very close resistance to the price. The use of these indicators supports a breakdown from the triangle. If that occurs, where will the price find support?

Reversal Areas

One support area is outlined below for TRX/USD. The closest support area is found near $0.03. If the TRON price breaks down from the triangle, it is likely to reach this area. The analysis of technical indicators supports this hypothesis.

Summary

The TRON price reached a high on Jul 2. Since then, it has been decreasing, trading inside a descending channel. The bearish divergence in the RSI and a bearish cross between the moving averages indicate that a breakdown is likely to occur. What do you think of this altcoin analysis? 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.