Tron has formed a bearish flag pattern to signal a continuation of the drop, possibly taking it down to the lows at 0.02500. This comes after a retest of the broken neckline of a triple top pattern on its 4-hour chart.
The formation spanned 0.04000 to 0.05500 so the resulting selloff could be of the same height. The 100 SMA is below the longer-term 200 SMA to signal that the path of least resistance is to the downside, which means that the selloff is more likely to persist than reverse.
However, stochastic is pulling up from oversold levels to signal a return in bullish momentum. RSI also seems to be on the move up so TRXUSD could follow suit. A bit of bullish divergence can also be seen as price made lower lows while RSI had higher lows.
A rally could find resistance at the short-term area of interest around 0.03500 or the moving averages’ dynamic inflection points around 0.04000.
The US dollar has outpaced most of its peers for the previous trading sessions on stronger than expected medium-tier data. This seemed enough to cement rate hike hopes for next week’s FOMC decision, although the announcement could come with a lot of cautious remarks.
Then again, the dollar is also drawing support from risk aversion, which is weighing heavily on higher-yielding assets including bitcoin and Tron. Further uncertainty in the markets could draw traders to safe-haven holdings instead.
Cryptocurrency investors are also understandably anxious about the upcoming G20 Summit during which world leaders could discuss their take on digital assets. IMF head Lagarde seemed more worried about the risks involved, but there could be some reassuring remarks from other leaders. If not, cryptocurrencies could be in for another leg lower, particularly on the push for stricter regulation.
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Partner Engineer, IPFS at Protocol Labs (Anywhere) – Blockchain News, Opinion, TV and Jobs