Tron (TRXUSD) Technical Analysis: One Breakdown After Another

Tron recently broke below its symmetrical triangle consolidation pattern to signal that a long-term slide is underway. Price consolidated briefly around the .019 mark in a bearish flag, and the continuation signal has been confirmed.

The mast of the flag spans around .019 to 0.023 so the next slide could be of the same size. Also, the triangle spans .015 to around 0.028, so the resulting downtrend could last by the same height.

The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. In other words, the selloff is more likely to gain traction than to reverse. The gap between the moving averages is also widening to reflect stronger selling pressure.

Stochastic has already reached the oversold region, though, indicating that sellers are exhausted and that buyers could take over soon. In that case, a pullback to nearby inflection points could be seen. Areas of interest are located around the .019 consolidation and the broken triangle bottom around 0.023. The moving averages could hold as dynamic resistance also.

Tron has joined the rest of its cryptocurrency peers in a free fall that started last week. Some of this has been pinned on the uncertainty stemming from the Bitcoin Cash hard fork while others also point to the SEC announcement on unlicensed ICOs as another catalyst.

Of course FUD has also kicked in, exacerbating the declines. Traders are likely moving funds away from cryptocurrencies as further losses are eyed and it would take months to recover from the drop.

Risk aversion is also evident in global financial markets with trade tensions resurfacing after the APEC summit and leading up to the G20 meetings later in the month. Uncertainty tied to Brexit may also be discouraging traders from taking on riskier assets like Tron and its fellow cryptocurrencies.

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