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Theprice has reached the resistance line of its channel and made a failed breakout attempt.
The resistance line of the channel has been in place since October 30. The price mustered some support at the 178 satoshi support level and made two breakout attempts, on December 22 and January 6.
Trader @TheEuroSniper stated that the TRX price has been consolidating under the resistance line for a while. The price is seemingly breaking out, and three targets are given, at 202, 232 and 270, respectively.
Consolidation under resistance has horns. pic.twitter.com/7szXWod1jV
— €uroSniper (@TheEuroSniper) January 6, 2020
Will the price reach any of the targets? Keep reading below if you are interested in finding out.
The TRX price created a support area above 320 satoshis since March 2018, validating it four times. The price broke down from this support area on June 26. On September 6, it reached an all-time low of 136 satoshis and has been increasing since.
While the weekly RSI was oversold for the first time during this all-time low, it did not generate bullish divergence, which is a strong sign of a reversal.
The price has not come close to reaching the previous breakdown level.
The rally that began after the aforementioned all-time low lasted until October 30, when the TRX price reached a high of 245 satoshis. Since then, the price has been decreasing, trading inside a descending channel.
TRX has twice bounced on the 0.618 Fib level at 178 satoshis. However, it has currently reached the resistance line of the channel and failed to break out. If the 0.618 Fib level fails, the next support area is found at 160 satoshis.
If the price decreases at the rate of the channel, it could reach it by the end of January, when it is coinciding with the descending support line.
The position of the daily moving averages (MAs) makes a breakout from this channel unlikely.
The TRON price is trading below the 50-, 100- and 200-day MAs. The former have made a bearish cross and are offering very close resistance to the price. Since a breakout from the channel would have to constitute a breakout above all the MAs, that seems unlikely.
To conclude, the TRX price has reached a significant resistance and is in the process of decreasing. We do not believe the price will reach the targets outlined in the tweet, rather it will decrease throughout the month of January towards the next support area.
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