Will TRON (TRX) Finally Break Out Above $0.04?

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In Brief
  • TRX has been rejected by the $0.04 resistance area.

  • Technical indicators in the daily time-frame are bullish.

  • The price has possibly begun a bullish impulse.

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The TRON (TRX) price was recently rejected by the $0.04 resistance area for the fourth time since July 2018.

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TRX is expected to eventually be successful in breaking out from this area and begin moving towards higher resistance levels.

 

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.

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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.

TRX Chart By TradingView

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.

TRX Chart By TradingView

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.

Source: Twitter

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.

TRX Chart By TradingView

Conclusion

The TRX price is expected to break out from the $0.04 resistance area and move towards $0.05.

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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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