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Amid heightened volatility in the cryptocurrency market, Tron (TRX) is facing mounting bearish pressure. Currently holding the 10th rank with a market capitalization of $19.25 billion, TRX’s price trend is showing signs of a potential decline. Over the past week, the coin has experienced six consecutive bearish candles, with a brief recovery on January 10. This has led to a 16% drop in TRX’s value, from $0.2688 to its current support level of $0.2231.
The falling price trend has created a bearish candle pattern, and Tron is now testing the 100 EMA line. TRX is trading at $0.2251, showing a slight recovery of 2% on the day. The formation of a doji candle amid this minor market recovery raises the possibility of a morning star reversal. If this pattern materializes, it could signal a bullish shift for Tron, despite the prevailing bearish trend.
The Relative Strength Index (RSI) is nearing the oversold territory, reflecting the persistent downward pressure. Furthermore, the 20-day and 50-day EMA lines are approaching a bearish crossover, reinforcing the bearish sentiment around Tron in the short term.
However, Bitcoin’s recent surge above $96K is providing a glimmer of hope for altcoins, including Tron. The broader crypto market is awaiting a potential bullish reversal, which could also benefit TRX’s price trajectory.
TRX Price Targets: Fibonacci Levels to Watch
If Tron’s price manages to reverse the current trend, it may face resistance at the 23.6% Fibonacci level of $0.2826. A strong recovery above this level could push TRX to $0.3272, the 38.2% Fibonacci level. On the flip side, a continued bearish trend could break the local support trend line, testing the 200-day EMA at $0.1934, with a risk of dipping below the psychological $0.20 mark.
In conclusion, while the immediate outlook for Tron remains bearish, the possibility of a bullish reversal fueled by Bitcoin’s rally cannot be ruled out, making TRX a coin to watch in the coming days.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
