Tron Worth Evaluation: TRX continues its upward momentum given the technical correction

Highlights
  • Resistance can rise as high as the $ 0.160 level
  • On March 25th, Poloniex announced the TRX stakeout

TRON is shooting at all cylinders after hitting an annual high near the $ 0.15 price level on April 5. TRX / USD has grown + 100% in the last 7 days, making it one of the top performing altcoins of the week. However, at the time of writing, TRX / USD is slowing its momentum following the rise in the relative strength index (MA 50) and finding crucial support at $ 0.125. Although the pair is maintaining its uptrend above the previous day’s low in the face of the technical correction, the TRON uptrend is still in its early stages.

Given the correction mode, traders can be patient until the pair closes above today’s high of $ 0.140 and, more importantly, climbs above the weekly high of $ 0.149. When this happens, resistance can rise to the $ 0.160 level. At the time the crypto asset was created, it is currently ranked 16th on the Coinmarketcap table with a market cap of $ 25.67 billion and a trading volume of $ 9.56 billion in the last 24 hours.

Tron founder Justin Sun admitted to being one of the investors who recently acquired the Poloniex cryptocurrency exchange from financial technology company Circle. Poloniex remains one of the largest cryptocurrency exchanges by volume. On March 25th, Poloniex announced the TRX stakeout. The Stakeout announcement could have increased the buyer’s demand for the TRX token as users can earn rewards by buying and using TRX.

TRX Daily Chart: reach

TRX / USD daily chart. Source: TradingView

The technical indicators in the daily timeframe provide a mix of signals. The intersection of the Relative Strength Index (RSI) within the overbought area and the daily bearish red candle between the upward channel is a negative warning that the bulls are losing energy. On the flip side, the RSI in the overbought region continues to move towards its 75 mark while the price itself has not yet reached the top of the chart, suggesting that there is more room for improvement.

On the flip side, a break below the immediate horizontal support line at $ 0.124 shifts the spotlight towards the moving average (MA 50) and the surface of the ascending trendline. The 50% retracement level of the uptrend from $ 0.051 to $ 0.15 is also in the neighborhood at $ 0.10, adding more credibility to the region. Hence, any breach at this point is expected to trigger a more aggressive sell-off, likely towards the $ 0.081 withdrawal zone on April 2nd.

Offer levels: $ 0.016, $ 0.015, $ 0.140

Demand levels: $ 0.124, $ 0.110, $ 0.100

To sum up, the TRX / USD is uncertain of its near-term alignment with its annual highs. Investors are likely waiting for a decisive move above $ 0.140 or below $ 0.125. However, in the medium term, a downward reversal will not disable the upward pattern unless price breaks below the supportive trendline and previous lows.

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