TRON (TRX) price plunge may be on the horizon

TRON is an open-source, decentralized protocol with a proof-of-stake consensus algorithm. TRX is a leading altcoin offering the TRON network convenience and flexibility. At the time of writing this post, TRX/USD is trading around $0.053. Candlesticks are forming in the baseline of the Bollinger Band. Overall, the short-term chart is bullish because RSI and MACD show positive momentum after the sudden fall in November. However, will it sustain?

The previous support price of $0.0558 will work as a resistance. This year, it was in the uptrend from June to August; after that, it has been consolidating within a range before finally breaking the support price in November due to the FTX liquidity crisis. Now the candlesticks are trying to regain the price range, so it is a good time to invest for the short term with a target of $0.0558 and stop loss around $0.05.

In the long term, TRX’s price has formed a triangle pattern with a yearly high of $0.092. However, the long-term TRX USD chart is bearish because it has been forming lower highs and lower lows with strong support around $0.058. This year, it has been consolidating between $0.07 and $0.058.

On the weekly chart, candlesticks are forming in the lower BB with bearish MACD and RSI, which suggest long-term bearishness, at least for the next few months. Last week it formed an indecisive candle and did not show any sign of reversal.

The next key level is $0.045, and the price has already tested the level in the second week of November, which suggests it might not come to this level again. However, the market can be volatile in the next few months, so that any significant news can disrupt the technical analysis of altcoins. It is crucial because the TRX price either breaks the resistance (previous support level) or the yearly low.

Based on our TRON prediction, we do not think it is the right time to accumulate the coin for the long term.

If you have already invested in the upper level, it is time to wait for the next few years. Otherwise, you can invest with a target and stop loss for the short term. Do not forget to track the price of your favorite coins in this uncertain market; follow our website to get the latest update on TRON.

Source