Tron (TRXUSD) Technical Analysis: Will the Channel Support Hold?

Tron is down to the bottom of its rising channel visible on the 4-hour chart and might be due for a bounce as technical indicators suggest. In that case, Tron could recover to the top around 0.0300 or at least the mid-channel area of interest around 0.0260.

The 100 SMA is above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse. Then again, price is trading slightly below these moving averages’ dynamic inflection points to indicate that selling pressure is piling up.

A candle closing below the 0.0200 mark could be enough to confirm that a reversal is about to take place. However, stochastic is already in the oversold region to indicate that sellers are exhausted. Turning higher could mean a return in bullish pressure. RSI also seems to be dipping into the oversold region and could be ready to pull back up.

Tron founder Justin Sun has been hyping up this altcoin, claiming that the recent update could make it much faster than Ethereum and overtake this digital asset in cryptocurrency rankings soon.

However, the sentiment in the industry and the general financial markets hasn’t been so positive and these risky assets took the largest hits. Stocks continue to sell off in anticipation of more Fed tightening, likely weighing on business and consumer spending, as well as appetite for higher-yielding assets like Tron and its peers.

Regulation hasn’t been looking too positive either, with the IMF earlier on warning of the risks of cybersecurity in relation to cryptocurrencies and the FSB also commenting on the pitfalls of these crypto-assets. In addition, the SEC is stepping up its efforts to crack down on potentially fraudulent activity surrounding ICOs, so the odds of a bitcoin ETF approval are looking slim.

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