Tron Technical Analysis: TRX Needs To Break Above Current Pattern And Reach 20-day SMA
Daily Tron TRX Price Analysis
- The Tron price will likely go down to fulfill head-and-shoulders pattern.
- The MACD shows increasing bearish market momentum.
Between April 16 and April 25, the Tron price dropped from $0.165 to $0.10 - losing $0.065 in its overall valuation. Looking at the daily chart, we can see that TRX is on the verge of forming a head-and-shoulders pattern.
The Tron Price Must Drop To Fulfill Pattern
This Monday, Tron jumped from $0.10 to $0.113 as the bulls stormed back in. However, TRX will need to fall down to the 50-day SMA ($0.0926) to finish the head-and-shoulders pattern. The MACD shows increasing bearish momentum so a further drop is expected. The parabolic SAR also tells us that the current market sentiment is negative.
Image: TRX/USD daily
Now, looking at the 4-hour Tron price chart, we can see that TRX has currently encountered resistance at the upper Bollinger band. The band has started narrowing, which tells us that volatility is decreasing. As such, sharp movement in price is expected.
Image: TRX/USD 4-hour
Tron-Owned Bittorrent Creator Bram Cohen's Project Chia Sparks Hard Drive and SSD Shortages
Bram Cohen, the inventor of BitTorrent, has created a blockchain transaction network dubbed Chia, which will launch next month. Chia’s team claimed that the project allows users to verify transactions without being dependent on “single-use hardware or a big electricity bill.”
Chia released the project’s Business White paper in February 2021, and the mainnet launched on March 19. This allowed participants to start accessing farming rewards and spurred the demand for hard drives and SSDs. Transactions will be enabled on May 3, and then, exchanges and brokerage services can allow people to trade chia tokens. The closer the Chia network’s transactional launch gets, the more demand grows for storage components.
Chinese e-commerce markets like JD.com and Taobao have reportedly seen high-grade hard drive models sell out fast since the Chia mainnet launch. A Taobao representative said:
Many people have inquired about large hard drives for chia mining in the past few days.
The Chia network’s storage incentives have increased storage product requests significantly, and hard drives between 4TB and 18TB are witnessing the highest demand.
Tron Price Is Expected To Reach These Levels
The Tron price will likely drop to 50-day SMA ($0.926) to fulfill the head-and-shoulders pattern.