Tron Technical Analysis: TRX Faces Key Resistance At 200-day SMA
Daily Tron TRX Price Analysis
- Tron price flips the 20-day SMA from resistance to support.
- The MACD in the daily chart shows increasing bullish momentum.
The Tron price crashed by $0.03 as it dropped from $0.082 to $0.0512 from June 4 to June 22. During this drop, TRX met continuous resistance at the 20-day SMA and reversed the 200-day SMA from support to resistance. Soon after, the buyers took control.
Tron Price Drops After Facing Rejection At 200-day SMA
The Tron price jumped from the $0.051 support to $0.066 since June 23 and flipped the 20-day SMA from resistance to support. The parabolic SAR has reversed from negative to positive and MACD indicates increasing bullish market momentum. As such, expect TRX to retest the 200-day SMA.
Image: TRX/USD daily
In the Tron price 4-hour chart, TRX has encountered resistance at the upper Bollinger Band and dropped from $0.069 to $0.066. During this fall, the relative strength index (RSI) has dropped from the edge of the overbought zone to the neutral territory. The Bollinger Band has also started narrowing, to show decreasing price volatility.
Image: TRX/USD 4-hour
Justin Sun Believes That EIP-1559 Is A Tron Duplicate
TRON CEO Justin Sun recently retweeted a tweet claiming Ethereum’s EIP-1559 upgrade is copying the Tron network. The message reads:
“What Ethereum does with EIP1559 is exactly to copy Tron blockchain, so who is copying now?”
The action indicates his agreement with the sentiment expressed by the post. EIP-1559 is an upgrade to the Ethereum network proposed by founder Vitalik Buterin in 2019. The upgrade aims to solve several problems in the Ethereum network, including the current high transaction fees of the network, especially at times of network congestion.
Ethereum currently uses an auction system to decide which transactions will be included in a block. With EIP-1559, that system will be replaced by one that automatically prices fees. It would allow people to add a tip if they want their transaction to be prioritized. Additionally, the upgrade will make the base fee the network chooses for transactions to be burnt instead of going to miners, thereby acting as an “Ether scarcity engine."
Although Vitalik Buterin has not responded to Sun, tension may be brewing as the two have clashed on Twitter in the past. For instance, Buterin earlier said that people who were predicting another 1000-times growth in cryptocurrencies from their present state were “incentivizing people to act more like Justin Sun”.
Sun responding to the tweet by saying that he believes cryptocurrencies would become as successful as the people were saying it would give time.
Tron Price Is Expected To Reach These Levels
The Tron price needs to break above the 200-day SMA in the daily chart and then touch the 50-day SMA.