Tron (TRX) Falls by More Than 35% After USDD De-Peg

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In Brief
  • TRX is following a long-term ascending support line.

  • TRX has broken down from an ascending parallel channel.

  • There is long-term support at $0.058 and $0.031.

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Tron (TRX) has been decreasing since the end of May, having fallen by 35% so far. It is possible that the decrease is occurring as a result of the de-pegging of USDD, even though the Tron DAO withdrew another $3 billion to defend the peg.

TRX has been falling since reaching an all-time high price of $0.18 in April. Throughout this decrease, it has bounced at the $0.058 area several times, most recently doing so last week. The area has been in place for 455 days. 

Currently, the price is trading just above this level and a long-term ascending support line, which has been in place since March 2020.

So, a potential breakdown below both these levels could very well be the catalyst for the acceleration of the downward movement.

Cryptocurrency trader @PostyXBT tweeted a chart of TRX, suggesting that the price will fall towards $0.03. If the current support line/area fails, the next support would be close to $0.03.

Ongoing TRX breakdown

The daily chart shows that the price has already broken down from an ascending parallel channel, and validated it as resistance on June 16 (red icon). 

The breakdown from the channel was also combined with a daily RSI breakdown from its ascending support line (green). So, it supports the legitimacy of the downward movement.

Future movement

The six-hour chart shows that TRX has been following a descending resistance line since June 1. The line has most recently been validated on June 12, causing a rejection and a sharp fall towards $0.0466.

There is a minor resistance level at $0.062, which will soon coincide with the resistance line. 

So, it is possible that TRX will get rejected at one of these two levels and begin its descent towards $0.031.

For Be[in]Crypto’s latest bitcoin (BTC) analysisclick here

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

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