TRON Uptrend Likely, Poised for 50% More Gains Before Resistance - Price Analysis

  • Short term trend: A recent uptrend may need some time to cool off
  • Long term trend: Strong uptrend on the charts

While most altcoins have been heavily outperformed by Bitcoin (BTC) during the latter’s dramatic weekend price reversal, TRON (TRX) has actually held pretty well with only a slight hiccup during the volatility -- and is up overall from the pre-weekend price even versus Bitcoin. A strong TRON chart looks like a clear uptrend, after its own reversal from a consistent downtrend that lasted almost all of 2019.

We start on a weekly TRX/BTC chart with Volume Profile indicator to get the lay of the land. ~TRON has been in a clear downtrend for almost the entire year, and has put in several months of bottoming after capitulating through the key support -- now resistance -- in red.

The big pictureTRX chart by TradingView

The area of most volume on the way up from here will comprise a major inflection zone, and Tron will have to chew through it to reach anywhere near previous highs (which may never happen).

On another weekly chart, we see the indicators support an interpretation of a clear uptrend. The histogram crossed back positive a few weeks ago, after spending most of the year churning in the negative side of the range, and now points up with a flat trajectory. Also, the stochastic RSI has now fully crossed over to the positive side; such a stoch-RSI profile in an uptrend signals that a solid base of strength is already built.

Bullish indicatorsTRX chart by TradingView

Going to a 3-day TRX/BTC chart, we likewise see bullish features and an accumulation period likely coming to a close. Volume has been growing in the last month or so, while price has been rising. The RSI has put in higher highs and lows, while the histogram is plateauing at pretty elevated levels.

Plenty more runway until the real troubleTRX chart by TradingView

Here, the moving averages are starting to cross bullish -- on the high timeframe 3-day chart, an important development. Price is getting held right in a previous resistance level, but due to the clear uptrend it doesn’t look like it will hold for long.

Recalling the Volume Profile chart, there is a good 50-60% of fairly open trading area until serious resistance is met, and we could probably consider this the first real test of the current uptrend.

In the shorter term, we see on the TRX/USDT daily chart that TRON is meeting stiff resistance at $0.20 despite its strong uptrend. Heavy selling has come in at about $0.20, as the RSI starts to graze overbought conditions. TRON may need to test the $0.18 region to assure support, and relieve some of the profit-taking pressure.

Not quite overboughtTRX chart by TradingView

But volume here still looks excellent, completely breaking the previous consolidation profile. The histogram is also breaking out of its pattern, although seems to be starting to arch down.

Overall, TRON looks to continue outperforming Bitcoin -- an enticing prospect with what seems like a Bitcoin uptrend in the cards.

The views and opinions expressed here do not reflect those of and do not constitute financial advice. Always do your own research.

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The Coronavirus Outbreak Is Delaying China’s Digital Currency Research

China’s research into the launch of its own digital currency has reportedly been delayed over the coronavirus outbreak, which according to recent data has infected over 81,000 people worldwide and claimed the lives of 2,765.

According to the Global Times, an anonymous source close to the matter has detailed that the outbreak forced several government institutions to slow down. The source was quoted as saying:

The coronavirus outbreak has led to postponed work resumption in government institutions, including the People's Bank of China (PBC). Policymakers and research staff involved in the DCEP project are no exception, which weighs on the development process.

Commenting on the case the CEO of a Shenzhen-based blockchain firm involved in the launch of the digital currency, Shentu Qingchun, noted the People’s Bank of China, the country’s central bank, was expected to make an important announcement during Q1 of this year.

Qingchun added, however, there’s only a month left and as such “chances that the announcement could be made on time are slim.” The currency, called Digital Currency Electronic Payment (DCEP), is still being developed and officials are discussing scenarios in which it could circulate as cash.

The source noted that the digital currency could still be launched on time as the central bank has “abundant talent” that can help it deal with the delay in research. Per Shentu, since the DCEP is a digital currency it would help reduce hand-to-hand contact among individuals, which has helped the coronavirus outbreak spread. As such, policymakers could give the DCEP more attention.

The Global Times’ source added that research into the DCEP has “achieved fruitful results” and that it’s close to an end. The central bank’s research institute, per the report, has applied for 65 patents involving digital currencies, while its institute of printing science and technology has applied for 22.

Featured image by Floriane Vita on Unsplash.