Disclaimer: The results of the following analysis are the author’s opinions alone and should not be considered investment advice.
As predicted by a previous article, you can see [TRX] It reversed from its falling wedge-like structure before reversing into descending pairs. For more than eight weeks, the sellers have been trying to breach the $0.063 support (now resistance).
The recent dip below this level has put TRX below the 20/50 EMA to show a bearish edge.
With the bulls holding the 1-week trendline support (white) in the $0.062 region, TRX may now enter a rather slow phase. At the time of writing, TRX is trading at $0.06277.
TRX 4 Hour Chart
The altcoin saw an expected bearish move after taking eighty of the 50 EMA (cyan) in a descending wedge impulse. This reversal, along with market sentiment, dealt a huge blow to the TRX bulls as they failed to defend the $0.063 level.
With 20 EMA (red) and 50 EMA (cyan) still heading south, sellers will continue to maintain their short-term advantages on the charts. A convincing close below the trend line will only confirm this narrative.
After a classic double bottom breakout, 2-week trendline resistance (white, choppy) reduced long bets and revived downside pressure. Hereby, TRX can aim to find the fundamentals to recover from the baseline $0.0623.
Overall, a break above the $0.063 resistance could change the short-term narrative in favor of the bulls. Here, trend line resistance (dashed) may form recovery barriers in the $0.064 area. The inability to do so may lead to further downward movements. A close below the $0.062 base line could expose TRX to a retest of the $0.0614 mark.
Compressed Relative Strength Index (RSI) in the range of 41-50. Buyers should look for a potential close above the equilibrium level before taking a long position.
Interestingly, the CMF rose above zero to show an increased buying advantage. Nevertheless, there is still a convincing crossover on the MACD to confirm the increasing bullish strength.
TRX’s close below the 20/50 EMA after losing the $0.063 level has put the coin back on a reasonable bearish path. To negate downtrends, buyers need to retake the level above and lead the swing above the two-week trendline resistance. The objectives will remain as discussed.
Finally, investors/traders should consider the movement of Bitcoin and its impact on the broader market perception to take a profitable move.