TRON Price Analysis: TRX bulls to hit a brick wall at $0.03

  • TRX/USD has recovered from long-term support.
  • The further upside may be limited by strong resistance at $0.03.

TRON’s TRX is one of the best-performing digital assets out of top-20 on Friday, September 18. The coin has gained nearly 9% on a day-to-day basis and partially recovered from the losses incurred during the previous week. At the time of writing, TRX is changing hands at $0.029, having recovered from the recent low of $0.025. The coin retreated from the ninth to 15th place in the global cryptocurrency rating, with the current market capitalization of $2 billion. An average daily trading volume settled at $2.8 billion in the last 24 hours, mostly in line with the recent week’s figures.

TRX/USD: The technical picture

Tron’s TRX hit the recent high at $0.05 on September 3, following Justin Sun’s announcement of the new DeFi-project and a meme $SUN. As the FXStreet previously reported, the community had been enthusiastic about staking their TRX coins to get some reward in SUNs

However, the hype faded away, and TRX quickly reversed most of the gains. TRX/USD has been moving along the sloping trendline since September 3 and bottomed at $0.026 on September 16. 

TRX/USD 12-hour chart

This support is created by 12-hour SMA200 on approach to the recent low of $0.026. As the barrier has been providing strong support for TRX since March’s market meltdown and survived bearish tests more than once, bears might have difficulty pushing the price below this area. Once it is broken, $0.02 will come into view.

While the price managed to regain the ground, further recovery may be limited by the psychological barrier of $0.03 reinforced by the above-said trend line (currently at $0.029) and a confluence fo short-term and mid-term EMA. A sustainable move above this area will increase the bullish momentum and bring $0.36 back into focus (September 9 recovery high).

TRX/USD 4-hour chart

Meanwhile, the technical picture on the 4-hour chart confirms the strong resistance on approach to $0.03. A cluster of moving averages and an upper line of the Bollinger Bands provide a significant resistance for TRX bulls and have the potential to push the price back towards the support area, which is also backed by the lower line of the 4-hour Bollinger Band.

To conclude: TRX/USD rebounded from the strong technical support of $0.026. However, for a sustainable recovery, we will need to see a move above $0.03; otherwise, TRX will continue consolidation with the bearish bias and may retest $0.026 within the nearest trading sessions. 
 

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