2018-7-25 17:57 |
Just over a week ago, Tron was trading near $0.045 amid reinvigorated optimism in the crypto markets. However, it quickly came back below $0.04 which has acted as an important long-term level for price action in Tron.
Upon announcement of yesterday’s news that Tron was acquiring BitTorrent inc., the company behind uTorrent, the price soared for the 11th largest cryptocurrency by the total market cap. Price immediately reversed its downward trajectory when the news was released and rose quickly to test the $0.04 resistance level.
The current drop is on low volume which means the price could rise again to retest the $0.04 level. However, even if it manages to surpass this level strong resistance would be expected at the 50EMA.
Tron Daily ChartOn the 4hr chart, we can see more clearly that the news of the acquisition failed to raise the price to the same level as what the optimism of last week did. This could be due to a number of factors such as the $0.04 being an even more important level now than it was last week.
The 200EMA on the 4hr could also be playing a role with price struggling to maintain above this price and failing to close above it on numerous occasions. With volume dropping off on this decrease, the 50 & 100EMA seem to be acting as support with the drop slowing down around these levels.
Tron 4hr ChartOn the shorter term 1hr chart, moving averages are also playing a key role with all of them converging to act as support close to where price action is currently. The MACD looks set to cross the centreline to the downside which could very well provide the bearish momentum needed to break through these support levels.
Volume has been low on drops but has also been low on any attempts of the price to rise. We currently seem to be trading in a range for the past few hours which is common after the big directional move.
Tron Hourly Chart Bullish Factors: The drop is on low volume so the price could be setting up for another rise. Support levels are acting strong. Formed a higher low on the daily. Bearish Factors: $0.04 is a very important level that has strong resistance. Even in the event that price breaks through the $0.04 level, the 200EMA will act as additional resistance. MACD looks set to have a centreline crossover to the downside on the hourly, a bearish signal which could break the support levels. DISCLAIMER: Investing or trading in digital assets, such as those featured here, is extremely speculative and carries substantial risk. This analysis should not be considered investment advice, use it for informational purposes only. Historical performance of the assets discussed is not indicative of future performance. Statements, analysis, and information on blokt and associated or linked sites do not necessarily match the opinion of blokt. This analysis should not be interpreted as advice to buy, sell or hold and should not be taken as an endorsement or recommendation of a particular asset.Tron [TRX] Price Fails to Pass Resistance at $0.04 After Bullish News was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.
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