Disclaimer: The conclusions of the following analysis are the sole opinions of the author and should not be taken as investment advice.
After holding a position above the 20/50 EMA for a few days, the bulls provided immediate support near the 38.2% Fibonacci support. The decline from the $0.069 level reignited bearish efforts to pull TRON [TRX] towards its 20 EMA (red).
Additionally, with strong 3-week trendline (white, dotted) support, the bulls may be aiming for a schematic breakout in the coming sessions.
A rebound from the 20 EMA could portend a short-term rally ahead of an eventual reversal from the $0.07 area. At press time, TRX was trading at $0.06709, down 0.55% in the past 24 hours.
TRX 4 hour chart
TRX saw gradual improvements after dropping to its yearly low on June 15. The recovery from its long-term support resulted in trendline support that lasted over three weeks.
The buyers revealed their short-term advantage, especially with price action moving past the 20/50 EMA. As a result, the TRX saw a bullish pennant-like pattern in the four-hour time frame.
Continued bullish momentum can help TRX break above the current pattern. In this case, the 200 EMA may cap buying efforts near the $0.07 area. Traders should look for rebound signals from this region.
In the event of a bullish invalidation, the alt could see a decline to the 61.8% Fibonacci support near the $0.065 area. Investors/traders should carefully assess the broader macroeconomic sentiments affecting short bets.
The Relative Strength Index (RSI) saw a sharp reversal from the overbought mark. During this time, he formed a descending wedge approaching the center line. Any reversal from the 50 level could inflict a schematic breakout and help buyers propel a rally.
Additionally, On Balance Volume (OBV) maintained immediate support despite lower lows in the price action. Thus, revealing a slight bullish edge. Finally, the Moving Average Convergence Divergence (MACD) lines still needed a bullish crossover to claim an upper edge.
Given the current setup near the 38.2% support, TRX might see a bounce before falling back into a bearish zone. The objectives would remain the same as above.
Finally, investors/traders should consider Bitcoin’s movement and its impact on the broader market perception to make a profitable move. An analysis of this would help traders anticipate the possibility of any bearish invalidation.