In this new crypto nugget, our Wednesday meeting to analyze a cryptocurrency, we will focus on TRX which is the native cryptocurrency of the Tron blockchain. This network works with a consensus mechanism which is the Delegated Proof of Stake. In this article, you will discover the most important levels that must be monitored and the bias to consider during this end of 2022.
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TRX on a key level on a weekly scale, a fall is imminent?
First, let’s look at the asset over a relatively large unit of time to take a step back on its evolution in recent months. The first thing we can see is the evolution of the price since 2019 around the pivot area at $0.050 (blue line). Previously it was resistance from July 2019 until February 2021. From now onsince June 2021, this level operates as a major support.
This is the level to watch to determine a break down that will trigger a new bearish leg or a rebound, for the asset to attempt to resume an uptrend. If the TRX is set to close on a weekly basis below its pivot zone and that it comes to evolve under its EMA200 which is a potential dynamic support to watch, two levels will be watched over the next few months:
- A former resistance at $0.04
- A second level located at 0.031 which was also a resistance
Should we hope for a rebound for the next few weeks?
To complete this analysis, let’s look at a smaller time scale to better understand the price fluctuations of the past few days. What is fairly quick to see is the relevance of the EMA200 on a daily scale which has continued, over the past few months, to act as a dynamic resistance by rejecting the TRX. Moreover, the MA100 did not facilitate the task for the asset since this moving average also acted as dynamic resistance. From now on, this one is in confluence with a former support at $0.059 which could become a resistance in case the price returns to its level.
We can consider the possibility of an evolution of TRX, for the coming weeks, in a range phase with the old support as a potential upper bound and the weekly pivot zone inasmuch as borne basse. In addition, it will be necessary to monitor the reaction of the price of TRX against l’EMA25 et l’EMA32 under which it currently stands. Having managed to recover EMA13 in recent days, a crossing of this trio of EMA would be a sign of a strong takeover of buyers who would like to direct the asset to higher levels.
Here we are at the end of this analysis of TRX. In addition to its evolution above a weekly pivot, it is clear that the rebound is currently taking place. However, on a daily scale, nothing is decided yet since the asset is moving below technical levels. Moreover, if he manages to overcome his EMA25 and EMA32, the game will not be over since a major resistance will arrive quickly: the MA100. If, in the event of a resumption of the trio of EMA, you want to increase the chances of registering a rebound, do not hesitate to switch to the H4 scale by monitoring the reaction of the price against the EMA200 while applying the same approach to moving averages.
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