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TRON (TRX) Price Stabilizes Amid Rumors of Justin Sun FTX Buyout

source-logo  beincrypto.com 23 November 2022 15:40, UTC

The Tron (TRX) price shows bullish signs in the short-term, indicating a relief rally towards $0.055. However, the long-term trend is considered bearish until that area is reclaimed.

The weekly time frame technical analysis for the TRX price gives a bearish outlook. The TRX price has decreased below a descending resistance line since its highest price of 2021 in April.

The line has caused six rejections so far (red icons). The most recent was on Nov. 7, initiating a sharp fall, also seen throughout the rest of the crypto market.

The ensuing drop was crucial for two reasons:

  • It caused a breakdown below the long-term $0.055 support area
  • It caused the RSI to drop below 50

As a result of this breakdown, the TRX price prediction is considered bearish. This would change with a reclaim of the $0.055 horizontal resistance area. If not, the decrease toward the next support at $0.036 is the most likely price forecast.

Despite the decrease, there is some positive TRX news. There are rumors that Justin Sun, the founder of the TRON blockchain, is interested in buying the assets of the now-defunct exchange FTX.

TRX/USDT Chart By TradingView

TRON Price Prediction: Relief Rally Prior to Fall

The daily time frame provides a more bullish outlook. The two main reasons for this are the long lower wick on Nov. 14 (green icon) and the bullish divergence in the daily RSI (green line).

These signs suggest an upward movement is expected. And while the TRX price decreased slightly over the past 24 hours, it could resume its upward trend soon.

The daily chart also shows that the $0.055 resistance area coincides with the 0.5 Fib retracement resistance level. As a result, while a relief rally towards it is likely, the trend cannot be considered bullish until that area is reclaimed.

TRX/USDT Chart By TradingView

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