Bad news for Tron (TRX) fans today, after Justin Sun was unable to attend the charity auction lunch with fabled value investor Warren Buffet - a lunch which Sun paid more than $4.5 million to attend. Sun cited medical issues as the reason, and TRX has today taken a tumble in the markets. We shall take these events as an occasion for a TRX price analysis.
In truth, Tron was not looking great even before the lunch snafu. Looking at the weekly TRX/USDT chart, we see that TRX has been battling to stay above a critical support starting at about $0.25. A huge dip in the beginning of July was only half reclaimed during the following week, and TRX was unable to retake its moving averages.
The indicators look terrible, especially so far during this week. Closing in this aspect would make a loss of the present support pretty likely: a both a bearish cross on the MACD and histogram, with a precipitous histogram tick down. We shall have to see how the week develops.
The TRX/BTC weekly chart is not much better. Price has broken through historic lows, and is now setting new historic lows - a negative price discovery, as it were.
The indicators are downtrending with no signs of laying a floor yet. The weekly histogram here is basically flat: it would need a couple of weeks of upticking to show a possibility of high timeframe (HTF) trend reversal.
The 3-day TRX/BTC chart admittedly looks better. The indicators are diverging favorably with price, suggesting that a bottom could be forming. But the bad news regarding Sun is not helping matters, with the current candle (closing tomorrow) threatening a pretty bearish, tweezer-top closing.
The zone around 340 satoshis would eventually mark the point of Tron’s breakout resistance. But the popular altcoin has a lot of work to do in laying this bottom before it gets there.
Coming all the way down to the daily, we get a mixed bag. RSI has been performing nicely on this timeframe, with a strong bullish divergence with price. Price itself, though, is threatening to lose the modest toehold it had above the clutch of EMAs - probably owing to the news.
Both the MACD and histogram here give cause for concern, too. MACD is contracting downward, whereas we would like to see fanning upward. Histogram is starting to accelerate to the downside - and if it closes the day with the aspect, the three-bar formation will constitute such a clear acceleration.
The overall picture with Tron, then, is one of needing a recovery. Although there some signs of increasing strength, a bottom is nowhere in the picture. Only true believers in long-term fundamentals, or shark-level expert scalp traders should be interested in Tron as a buy; for swing trading, there is nothing to go on.
The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.