TRON / USD Technical Analysis: Temporary Setback
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- TRX / USD has turned bearish over the short-term, after slipping below its 200-period moving average on the four-hour time frame
- TRON remains bullish over the medium-term, with the daily time frame showing a bullish pattern
- Bullish MACD divergence is also seen on the daily time frame
TRON / USD Short-term price analysis
In the short-term, TRON has turned bearish, with the cryptocurrency slipping below its 200-period moving average on the four-hour time frame.
A large inverted head and shoulders pattern is visible on the four-hour time frame, although danger is lurking in the near-term for the TRX / USD pair, as a series of smaller head and shoulders pattern have started to take shape.
Technical indicators are currently flatlined; traders should expect bearish momentum to be building while price continues to trade below the 200-period moving average.
TRX / USD H4 Chart (Source: TradingView)
Pattern Watch
Aside from the mentioned patterns, traders should watch for a shift in the recent dynamic of price making higher highs and lower lows. If we see the cryptocurrency breaking recent key trading lows, we could see technical selling accelerate.
RSI Indicator
The Relative Strength Index remains flat on the four-hour time frame and is currently generating no clear trading signals.
Momentum Indicator
The Momentum indicator is trading around the neutral level; traders should watch for a breach of the current monthly trading low for a possible bearish shift in the indicator.
TRON / USD Medium-term price analysis
Tron is bullish over the medium-term, with the TRX / USD spending over six weeks trading above its trend defining 200-day period moving average.
Buyers have so far failed to ignite a large head and shoulders pattern on the daily time frame, which if triggered would take the TRX / USD pair towards the 0.060000 level. Furthermore, bullish MACD price divergence is present on the daily time frame from June of last year.
Technical indicators on the daily time frame are slightly under pressure, following the most recent rejection from the neckline of the large inverted head and shoulders pattern.
TRX / USD Daily Chart (Source: TradingView)
Pattern Watch
The bullish inverted head and shoulders pattern remains the key development to watch across the daily time frame.
Key Moving Averages
Traders should monitor the TRX / USD pair’s 200-day moving average; a break below the 200-day could provoke a test of the current 2019 trading low.
Relative Strength Indicator
The RSI indicator has turned slightly bearish as downside pressure builds following the recent rejection from neckline resistance.
Conclusion
TRON is starting to come under downward pressure in the near-term, with the cryptocurrency moving closer to a possible technical test of some important support levels.
The daily time frame chart highlights that a strong bullish breakout will occur over the medium-term if buyers can trigger the large inverted head and shoulders pattern.
The presence of bullish MACD divergence on the daily time frame also offers a potential bullish target, which closely mirrors the upside objective of the inverted head and shoulders pattern.
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