Tron (TRXUSD) Technical Analysis: Ready for a Triangle Breakout

Tron has formed lower highs and higher lows to consolidate inside a symmetrical triangle pattern on its 1-hour time frame. The 100 SMA is below the longer-term 200 SMA on this time frame, hinting that the path of least resistance is to the downside.

In other words, the triangle support is more likely to break than to hold. If that happens, Tron could slide by the same height as the chart formation, which spans .01200 to .01500. The moving averages are also around the triangle top to add to its strength as a ceiling.

RSI is turning lower to signal the presence of selling pressure as well. Stochastic seems ready to move south without reaching the oversold zone, indicating that bears are eager to return. Still, a break past the 200 SMA could be enough to confirm that buyers are stronger and could push for gains that’s the same size as the triangle.

Tron’s founder Justin Sun continues to cause a scene in the markets, with the latest being his proposal on the network’s energy cost, which would be cut by half if passed by the governance committee. He tweeted:

“I have submitted Proposal 9 to reduce #TRON energy cost from 20 sun to 10 sun, which will dramatically decrease the cost of smart contract and creat[e] a developer friendly environment. Please vote for Proposal 9!”

So far it has received eight votes of approval from uTorrent, BitTorrent, callmeSR, lianjinshu, TRXMarket, Tron-Society, ALLE_Exchange, and JustinSunTron. The proposal has to garner at least two-thirds of the representatives’ approval for activation.

Meanwhile, Tron-based decentralized exchange will list three new trading pairs: BET/TRX, FUN/TRX, GOC/TRX, also according to Sun. The official website claims TronWatchMarket as “the fully-featured Decentralized Exchange (DEX)”, stating:

That will allow you to trade between TRON, TRX10, and TRX20 Tokens in a secure, decentralized manner. TronWatch Market will help to increase the liquidity of the TRON Token Network. As the DEX supports all tokens on the network, every token will benefit from this.

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