Tron may have seen a small 5.54% price decline over the past 24 hours of trading but it still does not take away from the significant 26% price hike experienced over the past 7 trading days. The cryptocurrency is currently trading at $0.0255 after a rough month of tumbling prices seeing a 27% price decline over the past 30 trading days.
What’s been going on?
There have been many developments coming from the Tron team over the past few weeks. One, worthy of mentioning, is the Tron wallet being accepted on the iOS store called TronWalletMe.
However, the most anticipated event this month is the launch of the Tron Virtual Machine expected on August 30 2018 09:30 (SGT time).
What is the Tron Virtual Machine (TVM)?
The TVM is a virtualized environment built to allow millions of developers to be able to code, build and execute smart contracts on the Tron blockchain. This allows developers to build specialised dapps as seen with Ethereum. Most importantly, the TVM is also compatible with the Ethereum Virtual Machine (EVM) so developers have the ability to code in the Ethereum Solidity coding language.
Where is Tron currently ranked?
Tron is currently ranked in 12th position in terms of overall market cap across the entire industry. It has a total market cap value of $1.68 billion after the 12 month old coin suffers a precipitous 56% price decline over the past 90 trading days.
Let us continue to analyse price action for Tron over the recent period.
TRX/USD – SHORT TERM – DAILY CHART
A brief catch up
In our last analysis, catch up here, we had outlined the support area marked by the downside 1.272 Fibonacci Extension level (drawn in green) priced at $0.018. This support level had proven to be valid causing the market to rebound from the level.
So what actually happened?
The market continued to rally through our expected resistance levels at $0.020 and $0.023 to hit resistance at April 2018’s low price of $0.028.
Where are we now?
Currently, price action has pulled back slightly and is trading around the $0.025 handle. We can see that this level is supported by the February 2018 price low.
Where can we go from here?
If the response from the TVM release is positive and the bullish momentum continues within the market to push price action above $0.028, then we expect immediate resistance to be located at the psychological round number handle of $0.030 followed by the bearish .236 Fibonacci Retracement level priced at $0.032. This Fibonacci Retracement level is measured from the high seen at $0.083 on May 22 2018 to the low of $0.016 seen on August 14 2018.
Further resistance expected above this level can be located at the 100 day moving average which is currently hovering around the $0.035 handle. If the market can continue even higher then even more resistance will be found at the bearish .382 Fibonacci Retracement level priced at $0.042.
What if the bears regain control?
Alternatively, if the bears can regain control within the market and push price action below $0.025 then we expect immediate support at $0.023 which is March 2018’s price low. Further support located below this level will then be expected at the short term downside 1.272 and 1.414 Fibonacci Extension levels (drawn in green) priced at $0.018 and $0.016 respectively.
What are the technical indicators reading?
Currently, the technical indicators are favouring the bulls within the market as the RSI trades well above the 50 handle. If the RSI can maintain itself above the 50 level then we can expect the bullish momentum to continue within the market.
SImilarly, the moving averages are beginning to show signs that will be promising for the bulls. The 7 day EMA (blue moving average) and the 21 day EMA (purple moving average) are trading directly on top of one another. If the 7 day EMA can cross up above the 21 day EMA then this would constitute a bullish crossover and would signal that the bullish pressure is mounting within the market.
Let us quickly analyse price action at a closer time frame for those who cannot keep their eyes off of the charts!
TRX/USD – SHORT TERM – 4HR CHART
What’s been going on?
Analysing the market from the short term perspective above, we can see that the recent bullish run caused the market to rise from a low of $0.016 on August 14 2018 to a high of $0.027 on August 28 2018, a price increase of around 70% from low to high.
We can see that the market had hit resistance when it made its high marked by a short term 1.414 Fibonacci Extension level (drawn in red) priced at $0.027. The market has rolled over and pulled back slightly from the high to trade around the $0.025 handle.
Where can we go from here?
From an entirely short term perspective, If the bullish momentum can continue within the market we expect initial resistance to come in at the 1.272 and 1.414 Fibonacci Extension levels priced at $0.026 and $0.027 respectively. If the market can continue even further higher we expect resistance at the 1.618 Fibonacci Extension level priced at $0.029.
Alternatively, if price action starts to fall more then initial support should be expected at the .382 Fibonacci Retracement level priced at $0.023. Further support below can be expected at $0.021 (.5 Fib Ret) and $0.020 (.618 Fib Ret).
Thank you for reading! We are just starting up so be sure to leave us some comments and please follow us on twitter @CoinLearning we would really appreciate the support!