Tron (TRXUSD) Technical Analysis: Testing Major Area of Interest

Tron is on a steady climb inside a short-term ascending channel and is currently testing resistance. A quick pullback to nearby support might be needed to gather some bullish energy to break past this longer-term area of interest highlighted.

However, the 100 SMA is still below the longer-term 200 SMA on this time frame, indicating that the path of least resistance is to the downside. In other words, the downtrend is more likely to resume than to reverse. Then again, it’s worth noting that Tron is trading above the 200 SMA dynamic inflection point to signal increased bullish pressure.

RSI is climbing but already hitting overbought levels to reflect exhaustion among buyers. Turning back down could bring a return in selling pressure and push Tron back to nearby support levels or all the way down to the lows.

Stochastic is also heading up but closing in on the overbought zone. This oscillator has yet to turn lower to signal a return in bearish momentum as well, which leaves buyers a bit of room to keep pushing price higher.

Tron has been edging higher on the news of the launch of BitTorrent’s own cryptocurrency BTT which will be built on the Tron platform. Recall that this was acquired by Tron earlier on and has a massive user base, which could tremendously help Tron gain mass adoption.

For now, traders are keeping close tabs on developments but more signs of progress are likely to buoy price higher. Besides, sentiment has been mostly positive in the entire cryptocurrency market on account of easing uncertainties and expectations of stronger institutional inflows in the months ahead.

Barring any major changes in this type of market mood, Tron might be poised to break past the former support turned resistance level and ascend to the next areas of interest closer to 0.0400 then at 0.0500.

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