The TRX price has dropped since June 7, when it reached a high after a breakout a week earlier. It seems to be at the end of the retracement period, indicating that a reversal trend is near.
On June 2, TRX price broke out of a long-term descending resistance line that has taken place over the past five months. In addition, the price has moved above the 50-day MA.
However, the price was rejected by the 200-day MA. To continue moving up, it needs to turn this MA into support. If successful, the next closest resistance level is found at 205 satoshi, namely the 0.5 Fib level of the entire decline.
If the price reaches this level, it is likely to produce a rally between the 50 and 200-day MAs, an indication that a longer-term uptrend has begun.
For future goals, the EuroSniper trader has sketched the resistance zone of 285 satoshi as the best candidate. Prices have not been trading in this area since June 2019.
On the 6-hour chart, the previously mentioned bullish trade between MA 5 and 200 periods took place. Moreover, the price is following a bullish support line and trading on it.
At the time of writing, the price was trading right at this support and below the support area of 189 satoshi, previously acting as a resistance. The current decline is like a confirmation of resistance that is support.
Therefore, the current price level is likely to reverse, which will mark the beginning of the long-term upward move mentioned in the previous section.
The short-term chart shows a descending wedge, as well as the bullish divergence on the RSI.
Because the wedge is considered a bullish reversal pattern, it fits perfectly into the long-term view. Therefore, a breakout from this pattern may occur.
TRX price has broken out of the descending resistance line and is in the process of confirming the long-term uptrend. In the short term, the price seems to be nearing its completion of a pullback, paving the way for a breakout that could lead to the start of a long-term uptrend.