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Tron (TRX) Price at Risk of Plunge Despite Justin Sun FTX Takeover Rumor

2 mins
Updated by Geraint Price
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In Brief

  • TRX is trading above support at $0.055.
  • It is following a long-term descending resistance line.
  • The weekly and daily RSI are bearish.
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The Tron (TRX) price risks breaking down from a long-term horizontal support area. If it occurs, this could trigger a 40% drop. 

On Nov. 10, the Tron-based USDD stablecoin de-pegged to $0.97. USDD is an algorithmic stablecoin, and its de-pegging immediately creates flashbacks to the LUNA and UST collapse.

Despite these negative Tron news, the Tron founder Justin Sun announced that he was working with FTX in a plan to potentially rescue investors. Finally, the USDD vs USDC/USDT/DAI pool is out of balance, with USDD accounting for 82.27%. 

Even considering this negative Tron news, the TRX price has increased considerably in the past 24 hours.

TRX Price Prediction: Weekly Breakdown Could Lead to 40% Drop

The Tron price has fallen underneath a descending resistance line since reaching a maximum price of $0.18 in April 2021. While underneath the line, it also broke down from an ascending support line that had been in place since March 2020.

Currently, it is trading above the $0.055 horizontal support area. The area has been in place for 532 days. 

If it breaks down, the Tron price could fall down to $0.036. This is a drop of 40% from the current price.

The weekly RSI supports this decrease. It has fallen below 50 and is decreasing.

Conversely, a breakout from the long-term line would invalidate this bearish Tron price prediction.  This seems unlikely at the current time.

Tron (TRX) Price Weekly
TRX/USDT Chart By TradingView

Short-Term Resistance Could Provide Confirmation

The technical analysis from the daily time frame supports the possibility of a breakdown. Firstly, it shows that the Tron price has followed a descending resistance line since May. The line rejected the price on Nov. 7 and initiated the ongoing downward movement.

Secondly, the daily RSI is below 50 and facing resistance from the line. 

Even if the Tron price were to break out from the line, there would be strong resistance at $0.07, created by both the 0.5 Fib retracement resistance level and a horizontal resistance area. Therefore, unless the Tron price is successful in moving above it, the Tron price forecast remains bearish.

Tron (TRX) price Daily
TRX/USDT Chart By TradingView

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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona 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. (I do not have a discord and will not contact you first there. Beware of scammers)
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