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Will the price of Tron (TRX) maintain bullish dominance at $0.22 and trigger a reversal-led channel breakout rally this week?
Amid increased volatility in the crypto market, the bearish influence on the Tron price trend is gradually intensifying. Despite holding the 10th rank in the crypto market with a market cap of $19.25 billion, the risk of further decline is growing.
However, shifting trends in the broader crypto market and Bitcoin price support the potential for a bullish reversal. Could this result in a morning star reversal for Tron?
Tron Price Analysis
Over the past seven days, the Tron price trend has seen six consecutive bearish candles, with a minor recovery on January 10. During this time, TRX’s price dropped nearly 16% from $0.2688 to the recent support level of $0.2231.
Meanwhile, the declining trend in TRX’s price created a falling candle pattern. Currently, the retracement tests the 100 EMA line. Notably, Tron is trading at $0.2251, with an intraday recovery of 2%.
As Tron forms a doji candle, the minor recovery in the crypto market increases the chances of a potential morning star pattern. However, the daily RSI line is now closer to the oversold boundary line due to the prevailing bearish trend.
Additionally, the 20- and 50-day EMA lines hint at a bearish crossover, as technical indicators maintain bearish cards for Tron.
As Bitcoin resurfaces above the $96K mark, the crypto market anticipates a bullish comeback among altcoins.
TRX Price Targets
Considering the Fibonacci level, a potential reversal in Tron will likely challenge the 23.6% Fibonacci level at $0.2826. If a recovery rally surpasses the local resistance trend line, this could push the price to $0.3272, corresponding to the 38.20% Fibonacci level.
However, a bearish continuation could fracture the local support trend line, testing the 200-day EMA at $0.1934 and threatening the $0.20 psychological mark.