Hi friends hope you are well and welcome to the new update on Tron. After the drastic drop from Feb to March 2020 the TRX has started the recovery rally like all other top coins. On daily chart the priceline has formed an up channel for the upward movement and recently on 10th and 11th May we have witnessed strong bearish candlesticks. And at that time the TRX was likely to break down the channel support. But now the candlesticks are moving side with the support and weak bullish candlesticks are appeared signaling that the bears are losing control.
The exponential moving averages:
After the death cross between EMA 10 and exponential moving average 21 on 25th of February the price action was facing a strong bearish trend. Finally on 7th April the EMA 10 crossed up the EMA 21 and formed the golden cross. Since then the price action is using the exponential moving average 10 and EMA21 as strong support. We can see from 10th to 22nd of April the candlesticks had been moving sideways on these EMAs and used these exponential moving averages as support very well then moved up and started the next rally. at this time the price action is again moving sideways on EMA 10 and 21 and using these exponential moving averages as a support. Therefore we need the closing above these EMAs for the next bullish rally.
The simple moving averages:
If we watch the simple moving averages on the daily chart then it can be clearly seen that since the price action has turned bullish in the mid of March 2020 it has easily broken out the 25, 50, 100 and 200 simple moving averages. After breaking out the 200 smple moving average the TRX tried retest the previous resistance as support but could not retained its position and moved down at 25 simple moving average again. At this time 50 SMA is moving up to form the golden cross with 100 in 200 SMAs. Once we will have the golden cross between 50 and 200 simple moving averages then it can produce more powerful bullish rally that can help the price line of TRX to break out the resistance of the channel that has been formed on the daily chart.
Triangle on long term chart:
Now if we switch to the long-term weekly chart then the price action of Tron has formed a triangle. And after hitting at the support it is getting bounced from there. I have also place the volume profile on the complete price action moving within this triangle. that is showing that the traders interest is very low below the support of this pattern. Therefore when the price action moved down where the trader’s interest was very weak TRX turned bullish and now it is likely to make another attempt to break out the resistance of this triangle. If we watch the movement of Bollinger bands then the upper band of the bollinger bands is above the resistance of the triangle. That is very positive sign and that will be helpful for the priceline for the breakout. Because if this bollinger bands would be below the resistance of the triangle then it could play a role of strong resistance to stop the priceline reaching the triangle resistance.
The breakout from key level resistance can lead Tron to $0.35:
Now I would like to show you the long-term resistance and support levels on this weekly chart. In my previous article we have seen that the priceline was at the support of $0.0127. Now it is getting bounced from the support and moving towards the next resistance level of $0.023. On this chart we have a key level resistance at $0.04. This $0.04 resistance level is very strong because since July 2018 when it was broken down the price action is not able to break out this resistance level again.
Once the Tron will be able to break out this key level resistance then there is no significant resistance level between $0.04 to $0.08. And in my point of view once the price action will break out this $0.04 resistance level then TRX will easily break out the next resistance level of $0.08 and then this breakout can lead the price action to hit the previous highest price of $0.35.
Big bullish harmonic move:
Here I would like to recall a very big bullish Shark pattern that has been formed on the monthly chart. I've also shown this pattern in my previous articles as well. I was expecting that after taking bullish divergence from the potential reversal zone of this pattern the price action will breakout all resistance levels on long term. But unfortunately after taking the bullish divergence of 114% the price action again dropped down in the potential reversal zone. But this buying zone level is a very strong support therefore the price action is likely to move up again on the long term and soon it was start a sequence of green bullish candlesticks. I am pretty sure that this bullish Shark pattern will be very much helpful for Tron to reach the previous highest price level of $0.35 that is more than 2000% from here.
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Further bullish movement depends in breaking out the 100 and 200 SMAs and the channels resistance on the daily chart. Once the price action will breakout these resistance levels then TRX can break out the resistance of triangle on long-term weekly chart then it can break out the key level resistance of 4 cents to achieve the highest price of 35 cents on long term.
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.
For better understanding of the article please watch the below video