Tron (TRX) Price Watch: Short-Term Reversal Formation in Sight
Tron Price Key Highlights
- Tron has formed an inverse head and shoulders pattern on its 1-hour time frame as a classic reversal signal.
- Price has already broken past the neckline to confirm that an uptrend is underway.
- Tron also seems to have completed a quick retest of the neckline and is resuming the bullish run.
Tron broke above the neckline of its inverse head and shoulders formation to confirm that gains are in the cards.
Technical Indicators Signals
The 100 SMA is still below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. This means that the selloff is more likely to resume than to reverse.
However, the gap between the moving averages is narrowing to signal weakening bearish pressure. This could also be indicative of a new crossover later on, likely drawing more buyers in. The chart pattern spans 0.035 to 0.039 so the resulting rally could be of the same height.
RSI looks ready to turn lower after hitting overbought levels, possibly leading sellers to return. Stochastic is also in the overbought region and turning lower could bring bearish pressure back in. A move below the neckline and moving averages dynamic inflection points could lead to another test of the 0.035 lows.
Tron and its fellow cryptocurrencies are off to a positive start for the quarter, likely as many investors continue to hold out hope for more developments until the end of the year. Besides, Tron has completed its migration away from the Ethereum blockchain as it had a coin burn and released the TRX previously on hold.
With that, more investors could return to Tron as the mainnet appears to have avoided any major glitches. Cryptocurrency demand is also being sustained by risk appetite as traders shift away from stocks and commodities vulnerable to a trade war.