TRX will be starting to heat up in the market this week with the new mainnet launch fast approaching. In the chart below we’ll see how Tron is beginning to tighten inside an ascending triangle pattern after bouncing off the 0.5 fib level in an earlier bull run.
With this new launch on May 31st expecting to propel Tron into direct competition with Ethereum, we could expect big things in the run up to this announcement.
In the 2hr chart above we can see Tron starting to consolidate against the upper 0.618 fib level resistance over the last 4 days with decreasingly lower lows. This ascending pattern is a strong indication that buying pressure is progressively overcoming each bearish dip in the price activity, as it edges towards a bullish breakout.
The best entry point into this trade will be the yellow area that lies on the uptrending support of the triangle. As long as the token continues to track along this support then we should expect further confirmations of a breakout to follow, with higher volumes and bullish signals on MACD and RSI momentum indicators.
Once we see a confirmation of support starting to amass, we should expect to see a bullish frenzy ensue as Asian investors in particular, respond to this big development update.
If the market continues in this current bearish fashion however, and the mainnet launch somehow fails to encourage support, then an early sell target will be in the red area along the 825 Sats level before a downtrending retracement toward the 0.786 fib level.
At the time of writing, RSI is yet to show any obvious upward movement and MACD is still below the signal line with the two moving averages flicking between diverging and converging. The bear market we can see in the crypto market today will no doubt have spread some uncertainty on the exchanges, with traders unsure of when the Tron rally will begin.
The effect of today’s bear market can also be seen on the exponential moving averages (EMA) as the 50 EMA (blue) has started to move closer toward the 200 EMA (red). Overall though, the 3 coloured lines are still well spaced and are not a great cause for concern at this moment in time.
Price Targets
Assuming the breakout continues as planned, we should expect the first price to surge toward the 0.382 fib level at 1,262 Sats, to provide a gain of 36.74% from the breakout resistance at 920 Sats.
The second price target will be a retracement up to the 0.236 fib level 1,465 Sats to deliver a 59.27% gain from the breakout line.
This article appeared first on Cryptovest