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As the chances of a rising wedge breakdown increase, Tron is approaching a crucial crossroads at $0.1597. Will buyers manage a bullish turnaround, or is a further decline imminent?
With the crypto market chaos resulting in massive ups and downs in altcoins, Tron is currently moving downwards. Failing to cross the $0.1686 barrier, the TRX price fall warns of a crash under $0.160.
Additionally, the high-risk breakdown of a rising wedge pattern on the daily chart could lead to a nearly 10% decline in Tron. The key question is: will the bulls step in and reverse the trend at the $0.1597 support level?
Tron Price Analysis
On the 4-hour chart, Tron’s price action shows a failed attempt to break above the $0.1686 resistance. This failure has resulted in an evening star pattern and six consecutive bearish candles.
The bearish price movement has caused a 4.29% drop from the $0.1693 level to the current market price of $0.1620. The downward trend is approaching a short-term support trendline near the 23.60% Fibonacci retracement level at $0.1597.
On a larger scale, the prevailing uptrend in TRX’s price action reveals a rising wedge pattern. Within this wedge, the recent reversal has formed a double top and established a neckline at the $0.1463 level.
The increasing bearish pressure has caused a negative crossover between the MACD and its signal line on the 4-hour chart. Additionally, the MACD histograms are showing a surge of negative momentum, and the RSI has fallen below the 50% mark. These technical indicators suggest a growing influx of selling pressure.
Will Tron Sustain Above $0.1597?
Using the trend-based Fibonacci retracement, a potential reversal from the 23.60% level ($0.1597) must surpass the 38.20% Fibonacci level of $0.1686 for an uptrend continuation. While the upside chances are low, the broader market recovery could propel the Tron prices higher.
In such a case, the next resistance levels for TRX are present at the 50% and 78.60% Fibonacci levels priced at $0.1762 and $0.1959, respectively.
A breakdown below the local support trendline will likely complete a double-top pattern, which could result in a massive fallout for Tron. A downfall below $0.1597 will plunge the asset to $0.1463, a nearly 10% drop.