TRON (TRX) price is in the process of validating the $0.055 area as resistance. If it fails to reclaim it, the downside momentum is expected to continue.
TRX is the native token of the TRON blockchain created by Justin Sun. The TRON ecosystem also contains a plethora of other digital assets.
The weekly time frame outlook for TRON is bearish. TRX price is decreased below Descending resistance line from April 2021.
So far, the line has caused multiple rejections (red icon) which recently led it to break above the $0.055 support area. Since the area had previously acted as support since March 2021, the breakdown was a meaningful development.
Technical indicators support the continuation of the decline. The weekly RSI is declining below 50. This is considered a bearish signal. When combined with a break above the $0.055 area, this suggests that the trend is bearish.
Currently, TRON price is in the process of validating the $0.055 area as resistance. Due to the bearish readings, the TRX price forecast will most likely be a rejection followed by a drop. If this happens, the next closest support area will be at $0.036.
On the other hand, a reclaiming of the $0.055 area and a breakout from the descending resistance line would indicate that the trend is bullish.
TRX Price Faces a Confluence of Resistance at $0.055
The short-term six-hours chart shows that the $0.055 area is also a 0.5 Fib retracement resistance level, adding to its importance. TRON price moved above this (red circle) on December 14th before turning down.
Over the past 24 hours, TRX price broke above a short term symmetrical triangle. However, it is yet to rise above the $0.055 area. For the trend to be considered bullish, TRON price needs to recapture this area.
To conclude, the expected TRX price forecast is bearish, predicting a decline to $0.036, due to a fairly bearish reading from the weekly time frame. Retesting the $0.036 area will negate this bearish outlook.
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