Tron (TRX) Wrestling With the $0.084 Resistance Level: Will it Break Through?

22 Sep 2023 by Crypto Presale 2 min read

Tron (TRX) has been on a good run this year. It’s one of the tokens that has remained bullish despite all the regulatory scrutiny, the FTX dump scare, and hundreds of other negative sentiments in the cryptocurrency market. The TRX price hasn’t changed much in the past 24 hours, but the token is up 8% in the last 30 days and up 55% YTD.

The steady rise in TRX's price may be attributed to its massive token burn mechanism and increasing adoption. Notably, on August 30th, the TRX supply saw a net decrease of approximately -9.78 million tokens. Similarly, data from TRONSCAN indicates that nearly 1 billion TRX tokens have been taken out of circulation over the past three months. In addition, the blockchain's adoption has been steadily increasing, with the total number of addresses reaching 181.8 million and the total transactions surpassing 6.3 billion. Artemis' chart highlights that TRX's adoption rate experienced a significant boost in the past month.

Technical Analysis

Daily Timeframe

Source: TradingView

In the daily timeframe, Tron (TRX) has been on a steady rise, and it’s wrestling with the resistance level around $0.084. We can see that Tron has tried to break above this same level in June and also in late July, but both times has been rejected, and the sellers pushed the price down. Will TRX be able to break the resistance this time?

Currently, TRX is trading above both the 50-day EMA and 200-day EMA, which shows that the buyers are still dominant. Also, the RSI is at 61.28% , which means that the bullish momentum is still strong.

4 Hour Timeframe

Source: TradingView

In the 4-hour timeframe, the overall trend is still bullish. However, TRX has been consolidating within a tight range in the past few days. A break and close above this range might mean the buyers still have the fight in them and can see the token break this major resistance level. However, a break and close below this consolidation might see the price of TRX fall back to the $0.079 region. Also, the RSI is currently at 50.9%, which is neutral and shows there is a balance between the buying and selling momentum.

Will Tron (TRX) Break Through?

Right now, there is a balance of power between the buyers and the sellers. The price can break out on either side of the consolidation. For Tron to break through this barrier, it needs a major catalyst to trigger a rally. Maybe a major positive shift in market sentiment or a rise in the influx of investors into the ecosystem can do the trick. Without fundamental news to revive the buying momentum, it will be difficult for TRX to break this major level.

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