Tron Technical Analysis: TRX Faces Resistance At The 20-day SMA
Daily Tron TRX Price Analysis
- The Tron price has reversed the MACD from bearish to bullish.
- TRX has flashed the green-nine candlestick in the TD detector.
With four bullish sessions out of the last five, the Tron price has jumped from $0.068 to $0.080. However, looking at the daily price chart, we can see that TRX has more or less hovered horizontally. Let’s take a closer look with technical analysis.
Tron Price Has To Overcome 20-day SMA
In the daily Tron price chart, TRX has flashed two major buy signals. Firstly, it has reversed the parabolic SAR from negative to positive. Secondly, the MACD has flipped from bearish to bullish. As things stand, Tron is sitting right below the 20-day SMA.
Image: TRX/USD daily
Looking at the four-hour time frame, we can see that Tron price has been moving horizontally for quite some time. The relative strength index (RSI) is hovering along the neutral zone, which tells us that the buyers and sellers are cancelling each other out. However, the TD sequential detector has flashed a sell signal in the form of a green-nine candlestick, which tells us that TRX may face a correction in this timeframe.
Image: TRX/USD 4-hour
Justin Sun: Crypto Bull Market Isn’t Over
Justin Sun, the founder of TRON, revealed that he believes the crypto bull market isn’t over and that a new rally is due in the next few months, although, in June, the market may keep dropping before a potential rally.
In an interview with Bloomberg, Sun revealed that he believes we’re going through a “price adjustment” in June, before the market can keep on rallying in both July and August. Per his words, the “bull market is still there, and we will continue to see developments of cryptocurrency.”
The founder further argued that the recent downturn in the markets was a necessary correction after the rally. Sun was asked about Tesla’s involvement in the cryptocurrency space. The electric car maker started accepting BTC payments in February when it invested $1.5 billion in BTC, but months later stopped accepting Bitcoin as a payment method over environmental concerns.
To Sun, Musk’s concerns are legitimate, but the problem will be solved eventually by using green energy to mine cryptocurrencies. Moreover, some cryptocurrencies use a Proof-of-Stake (PoS) consensus algorithm, which does not rely on heavy computational work like Proof-of-Work (PoW) networks do.
Discussing China’s crackdown on cryptocurrencies, he said the country would not succeed over the decentralized nature of the space. Economic opportunities created in the space will mean cryptocurrencies will keep growing in China, he noted.
Crypto is going to grow in China like in most countries, because right now, crypto in China also has a high interest tied to the local government, tied to lots of the people’s jobs in China. So I don’t think China can crackdown on crypto overnight.
Tron Price Is Expected To Reach These Levels
If the buyers continue to take control of the Tron price, they will be able to push TRX past the 20-day SMA and reach the $0.1 psychological level.