The TRON (TRX) price was recently rejected by the $0.04 resistance area for the fourth time since July 2018.
TRX is expected to eventually be successful in breaking out from this area and begin moving towards higher resistance levels.
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TRX Long-Term Resistance
The TRX price has been trading below the $0.04 resistance area since July 2018. While the price has moved above this level three times since, it has failed to reach a weekly close above it, creating long upper wicks each time.
TRX again reached the $0.04 level yesterday but was rejected and is currently in the process of creating a long upper wick.
The Stochastic oscillator has made a bearish cross, suggesting that a downward move is in store. The RSI has not confirmed its bearish divergence but is overbought.
If the price were to break out, there is almost no resistance until $0.09.
Will TRX Break Free?
A look at the daily time-frame shows that the $0.04 resistance area is also the 0.618 Fib retracement level of the entire previous downward move, further strengthening its significance.
Despite the rejection, technical indicators are bullish and support a continued increase, which could lead to a breakout from the $0.04 level.
Cryptocurrency trader @mesawine1 outlined a TRX chart, stating that the price is likely to increase, suggesting a movement similar to that of THETA, which created a cup-and-handle pattern.
The readings from technical indicators in the daily time-frame make this likely.
However, the resistance line for the pattern would be expected to fall at $0.040 instead of the wick highs at $0.050, since the area has acted as resistance over the past two years.
Wave Count
The wave count for TRX suggests that the price began a bullish impulse after the Sept. 3 low and has currently completed wave 3 (shown in black below).
While it is not yet certain whether wave 4 has already been completed, TRX is expected to increase and break out after doing so.
Conclusion
The TRX price is expected to break out from the $0.04 resistance area and move towards $0.05.
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