This week has seen the crypto market slide a further $75,000,000,000 with substantial losses across the board. Looking into the top 20 cryptocurrencies by market capital, Tron has suffered the biggest retraction, currently down -34.94% over the past 7 days.
With every action we expect an equal and opposite reaction to occur and Tron is no different here.
Looking into the 4hr chart below we can see an Elliott Wave correction opportunity presenting itself within the current downtrend, confirmed by a clear relationship with Fibonacci numbers. Points 3,4 and 5 rest well along fib retracement lines in the uptrend which allows us to predict new support and resistance levels for the asset.
Elliott Wave Theory
Elliott Wave theory is a very popular technical indicator used by traders to predict price actions and identify correction levels; useful when seeking profitable entry and exit points.
The theory divides itself into two parts, the ‘Impulse Wave’ and the ‘Correction Wave’. It is believed that Elliott Waves repeat themselves infinitely throughout a chart, where waves can sometimes appear during intraday trading or take as long as a year to form.
The Impulse Wave consists of 5 points within the uptrend of an asset followed by 3 lettered points that represent the bearish Correction Wave.
Points 1,3 and 5 of the Impulse Wave should indicate bullish runs and points 2 and 4 should show the price falling after testing key fib levels.
Assessing the TRX/BTC chart we can see the movement satisfy further criteria of an impulsive Elliott Wave in that point 2 does not fall below point 1, point 4 does not pass within the region of point 1 and finally, point 3 is the longest bullish run within the uptrend.
Tron (TRX) Price Prediction
At the time of writing, Tron is down -10.11% against BTC. After retracing to the 0.618 fib level / 455 Sats ($0.30 at current market value), we should expect to see a rebounding bull run take TRX back up towards 600 Sats ($0.39).
From there, we would expect the pattern to continue towards point C of the Correction Wave around 500 Sats ($0.33). Depending on market sentiment we could see the price continue in a bearish fashion as traders note the H&S pattern formed within the Elliott Waves as shown below, and withdraw from TRX in search of other trending assets.
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