Hi guys and gals hope you are doing well and welcome to the new update on Tron coin. Few days back TRX coin was likely to break down the channel’s support but this week it is again entered in the channel.
Even though TRX was moving down with Bitcoin and all top alts to break down the channel but the release smart contract privacy protocol was scheduled on 7th July made this week bullish for Tron coin and this week it has rallied around 21% and re-entered in the channel. At this time the price action is likely to re-test the support of the channel. In case of successful re-test, the price action can move up to the resistance. And after reaching at the resistance of channel TRX will gain 18% more value.
Tron moved back above the EMAs:
On the daily chart, the price action of TRX also has broken out the exponential moving average 10 and exponential moving average 21. At this time it is again above these two EMAs. From the first week of April 2020 the exponential moving averages 10 and 21 are working as good supports for the Tron. Therefore these EMAs can be helpful for TRX to start the next upward move.
The simple moving averages are broken out again:
Previously the price action of TRX broke down the 25 simple moving average and in the past week, it was at the support of 50 SMA. Finally, the price action has again turned bullish and broke out the 25 simple moving average again. At this time the price action is above 25 simple moving average and likely retest as this simple moving average as support.
The bullish candlestick has appeared at the resistance:
The price action of the Tron coin is also moving in a descending triangle. And after hitting at the resistance it was likely to move down at the support. But this week we have a bullish candlestick that is again going to hit the resistance of the triangle to make another attempt for the breakout. Turning from bearish to bullish at the resistance is another very positive sign in favor of bullish momentum.
If we watch the different support and resistance levels on the daily chart then TRX has the support at $0.0127. And after the rally of this week, the price action is in the correction mode. But as we have the 25 and 50 simple moving averages as good supports and the price action has just broken out the 25 SMA. Therefore there will be fewer chances that the price action will be dropped down again at the support.
Bullish Shark move:
Now I would like to draw your attention to the chart that I posted on September 2019 where I revealed that the price action of Tron has completed the formation of Shak pattern. At that time it was in the potential reversal zone of Shark. Finally the price action Tron turned bullish in January 2020 and produced more than 114% bullish rally and dropped down again in the potential reversal zone. At this time the price action is again turning bullish and moving above this PRZ level. Therefore I am expecting a sequence of the bullish candlesticks on the monthly chart that can lead the price action of TRX towards a very long term bullish rally.
Bullish Shark before execution:
Bullish Shark after 114% move:
A few days back the price action of TRX was bearish on short term and on mid-term but now it is turned bullish on short term and mid-term as well. However we should set our stop loss the support of the up-channel that has been formed on the daily chart to minimize the risk factor.
Note: This idea is education purpose only and not intended to be investment advice, please seek a duly licensed professional and do you own research before any investment.