Tron lost its momentum over the weekend, and since then, it has crashed by over 40%. The cryptocurrency is now struggling to find support.
Key Support Levels: $0.050, $0.040
Key Resistance Levels: $0.057, $0.064
The fear started as soon as the USDD lost its 1:1 peg against the dollar. Since then, TRX has failed to stop the downtrend, losing over 40% in less than a week. TRX could experience massive selling pressure to close the gap as long as USDD remains below the dollar.
So far, the price has managed to find relief at the $0.05 support level from where it bounced higher. Resistance lies at $0.057, and it is highly unlikely for TRX to reverse its trend considering the current fundamentals.
trading volume: Heavy selling pressure has caused the price of TRX to drop in a short period of time. Sales volume remains very high at the time of this post.
RSI: The daily RSI has reached oversold position at 23.
MACD: Daily MACD is in freefall. The current downside momentum is turning bullish, and the histogram is making lower lows. This can be interpreted as very bearish.
The bias for TRX is bearish.
Short term prediction for TRX price
Despite Justin Sons’ post that USDD is highly collateralized, the market does not confirm this. As long as this continues, TRX’s trend is likely to remain bearish, and the next major support is found at $0.040.
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Cryptocurrency charts by TradingView.