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Holding steady at $0.21, Tron is aiming for a quick turnaround rally to break free from the bearish channel. Could this propel TRX to $0.30?
With Bitcoin hovering around $97,000, the 10th-largest cryptocurrency, TRON, has posted a minor recovery of 0.39% over the past 24 hours. While it struggles to bounce back from the recent market crash, the short-term recovery hints at a potential rebound.
However, the significant decline in crypto market sentiment limits TRON’s chances of a bullish comeback. Amid these conditions, is a breakout from the falling channel pattern possible for TRON? Let’s dive into the analysis.
TRON Price Trend: Falling Channel Pattern Takes Shape
In the daily chart, the TRX price trend reveals a quick bump, leading to a falling channel pattern. After a 94% surge on Dec. 3, TRON took a quick pullback with a 23% drop on Dec. 4.
The price decline extended, now forming a falling channel pattern. Within the pattern, the TRX price has found a crucial support level just before the $0.20 psychological mark.
With multiple lower price projections, TRON is holding its ground above the $0.21 mark. With this sustained support, the price trend also hints at a double-bottom reversal within the falling channel pattern.
Technical Indicators: Signs of a Potential Reversal
Supporting the reversal potential, the daily RSI line indicates a bullish divergence between the two lows. However, TRX is trading within the lagging spans A and B, which still maintain a bearish outlook.
Additionally, the conversion line, baseline, and lagging span line modestly defend short-term consolidation within the channel. Despite this, the overall price action suggests a bullish breakout could be on the horizon.
Community Sentiment: Tron’s Strong Market Performance
Amid the potential for a breakout rally, a recent X post from LunarCrush analytics ranked Tron first on Altrank.
This ranking reflects strong community activity and solid market performance, offering a sentiment boost for Tron, even amid broader market corrections.
Tron Price Target: Can TRX Reach $0.30?
Based on Fibonacci levels from the recent pullback, a channel breakout rally could push TRX prices to the starting point of the channel, near the 38.2% Fibonacci level. This level aligns with the $0.30 psychological mark, suggesting an upside potential of over 30%.
However, with the broader market pullback, TRX might dip below $0.21 and test the local support trendline. This could lead to a 12% drop, testing the $0.20 psychological level.