Why TRON (TRX) Could See a 35% Drop

TRON (TRX) price broke the $0.055 long-term horizontal support area. The trend is considered bearish until this area is reclaimed.

TRX is the native token of the TRON blockchain created by Justin Sun. The weekly time frame technical analysis is bearish. This shows that since the April 2021 high of $0.188, TRX price declined below a descending resistance line. The high was down 50% from its January 2018 all-time high of $0.35.

Rekha has made six disclaimers (red marks) so far. The most recent was on 7 November. This caused a breakdown from the long-term $0.05 support area, with the entire crypto market witnessing a decrease. thIt was considered a very bearish development since May 2021 was in this area.

As a result, the TRX price forecast is considered bearish until the price reclaims the $0.055 area. Since the area coincides with a long-term descending resistance line, this seems unlikely.

If the downside momentum continues, the next closest support area will be at the average price of $0.036.

TRX Price Prediction: TRON is Facing a Huge Downside

The daily chart shows that TRX price started an upward move on November 14, forming a very long lower wick (green icon). Such lights are considered a signal of buying pressure.

Later, the daily RSI formed a bullish divergence (green line), which preceded the current upward move. The rate of increase accelerated in the past 24-hours, taking TRX price towards the $0.055 resistance area, which also coincides with the 0.5 Fib retracement resistance level.

Therefore, the current level is ideal for rejection due to the confluence of these resistance levels. Moreover, the daily RSI has recovered from below to reach the 50-line, consolidating the validity of the resistance zone.

If there is a rejection, TRX price could decline towards the previously mentioned $0.036 support area.

On the other hand, a reclaiming of the $0.055 level would invalidate this bearish TRX price prediction.

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