Tron Price Could Plummet 10% If It Losses Key Support

Tron price has come under pressure this month as it retreated by 5.70% from the year-to-date high. TRX fell to $0.1612 on November 7 and is at risk of more downside if it losses the lower side of the rising broadening wedge pattern.

Tron Price Could Dive Soon

TRX price’s long running bull run could end soon unless bulls are able to hold a key support level. 

On the daily chart, the coin has formed a rising broadening wedge, a popular reversal sign in technical analysis. This pattern is characterized by an ascending trendline that connects several lower highs and another one that connects a few higher highs. 

Therefore, Tron bulls will need to ensure that the Tron price remains above the lower side of this pattern in the near term. This lower side also coincides with the strong pivot reverse point of the Murrey Math Lines and the 50-day Exponential Moving Average (EMA).

A break below that level will be a sign that bears have prevailed, opening the possibility of it dropping to $0.1462, its lowest level on September 6. This target is about 10% below the current level and is along the major S/R pivot point. It is also a few points above $0.1450, its highest swing in February this year.

The TRX price forecast will be invalidated if Tron rises above the Weak, Stop & Reverse point at $0.1647. If this happens, it will bring the upper side of the wedge pattern at $0.17 to view.

Justin Sun Is Bullish On TRX And Crypto

Meanwhile, Justin Sun, Tron’s founder, has expressed hopes that Tron and other cryptocurrencies, including Ethereum, will bounce back soon. He cited the improving macro environment, recommending that investors should accumulate and build.

The biggest macro event this week has been Donald Trump’s election in the US, which has raised the possibility of friendly regulations. He cited these policies in his congratulatory statement to Trump on Wednesday. 

Justin Sun has long been optimistic about Tron, which has emerged as a leading player in the crypto industry. According to Tronscan, Tether on Tron has over 55 million users and had a trading volume of almost $70 billion on Wednesday. On average, USDT on Tron handles similar or even higher volumes than companies like Visa and Mastercard.

The challenge for TRX price, however, is that its Sun Pump ecosystem is not doing well, with the total market of all coins falling to $233 million. 

Source : CoinGape - Nov 7, 2024