- Resistance may run-up to the $0.160 level
- On March 25, Poloniex announced TRX staking
TRON is firing on all cylinders after hitting a yearly high near the $0.15 price level on Apr. 5th. TRX/USD grew by +100% in the last 7 days, making it one of the week’s top-performing Altcoin. However at the time of writing TRX/USD is slowing its momentum after the rise in the relative strength index (MA 50), finding crucial support at $0.125. Although the pair is sustaining its upward trajectory above the prior day’s low amid the technical correction, the TRON upside run is still in the early stage.
Given the correction mode, traders may remain patient until the pair closes above today’s high of $0.140, and more importantly, rallies beyond the weekly high at $0.149. If that is the case, resistance may run-up to the $0.160 level. At the time of composing the crypto asset is currently 16th on the Coinmarketcap table, with a market cap of $25.67 billion and $9.56 billion in trade volume over the past 24 hours.
Tron founder Justin Sun admitted to being one of the investors that recently acquired cryptocurrency exchange Poloniex from financial technology firm Circle. Poloniex remains one of the biggest cryptocurrency exchanges by volume. On March 25, Poloniex announced TRX staking. The staking announcement could have added to the buyer demand for the TRX token because users can earn rewards by buying and staking TRX.
TRX Daily Chart: Ranging
The technical indicators on the daily time frame provide a mixture of signals. The relative strength index (RSI) intersection within the overbought area and the daily bearish red candle between the upside channel is a negative warning that the bulls are losing energy. On the other hand, the RSI continues to move in the overbought region towards its 75 marks, while the price itself has yet to reach the upper part of the chart, suggesting that there is more room for improvement.
On the downside, a break below the immediate horizontal support line at $0.124 will shift the spotlight towards the moving average (MA 50) and the surface of the ascending trendline. The 50% retracement level of the $0.051 – $0.15 up leg is also located up in the neighborhood at $0.10, adding more credence to the region. Therefore, any violation at this point is expected to trigger a more aggressive sell-off, likely towards the $0.081 lift-off zone of Apr. 2.
Supply Levels: $0.016, $0.015, $0.140
Demand Levels: $0.124, $0.110, $0.100
To summarize, the TRX/USD appears to be unsure of its short-term directional bias around its yearly tops, with investors likely waiting for a decisive step above $0.140 or below $0.125 to act. However, in the medium term, any downside reversal will not deactivate the upward pattern unless the price falls below the supportive trendline and previous lows.