TRON price (TRX) has been ascending in turbulent fashion since the mid-November sell-off. Although the uptrend is still intact, the technicals show concerning signals. Traders should practice conservative risk management techniques while engaging with TRON’s future price action.
TRON price recoups losses
TRON price has displayed an exhilarating effort to put lost market value back into the hands of investors. On November 14, the bears produced a new low for the year at $0.045. Sidelined bulls immediately took advantage of the discounted TRX and have since induced an 18% uptrend rally.
TRON price currently trades at $0.053. Traders looking to partake in more bullish price action should be easy as the uptrend’s technicals depict a waning trend. For one, the monthly candlestick settled 14% below November’s opening price. The volume profile indicator has not yet shown an uptick needed to justify an entry. Additionally, the 18% rally has progressively gotten more turbulent as each pullback pulls the liquidity rug from underneath it. In other words, the 18% rally looks more corrective than it does impulsive.
A Fibonacci retracement tool surrounding November’s decline shows the current TRX price at 50%. Since the technicals do not show a five-wave structure, aiming higher than a 61.8% fib level would be ill-advised. The 61;8% fib level is the $0.056 price zone which lies 5% above the current market value.
Keeping these factors in mind, the TRX price could very well roll over in the coming days. A breach of the 21-day simple moving average at $0.052 would be the cue to enter a short position and target the new yearly low at $0.045. Such a move would result in a 15% decrease from the current TRON price.
