Tron has disappointed a lot of investors this year. With high anticipation for the mainnet launch which took place on May 31st, price appreciated to $0.092 in April and a high of $0.085 in May. It now trades at $0.022 after being in a downward spiral since the mainnet launch.
Could it be setting up to outperform now after this decline? Price has experienced significant resistance at $0.028. Although it trades below this point, price action has been forming a series of higher lows forming an ascending triangle. An ascending triangle is a bullish continuation pattern and would indicate if price action keeps trading in this pattern, it will make a sharp move to the upside.
After the recent declines in the market, price action in Tron is back trading at the trend line of the triangle. This is going to be a key test for the triangle pattern as if it cannot hold here; the pattern is likely to break down. Trading volumes have been low across the market. The little strength behind the drop may mean the trend line of the triangle could hold up.
After the recent drop, Bitcoin’s share of the market cap of cryptocurrencies has risen to over 54%. With Bitcoin representing a large share of the market cap, its movements will have a significant impact on those of the altcoin market. A drop from here for Bitcoin would likely result in a break down of the ascending triangle Tron is forming. However, a rise from here for Bitcoin would be bullish for Tron and may even result in enough momentum for Tron to break out of the ascending triangle to the upside.
- Tron has depreciated significantly since its mainnet launch in May.
- Price of Tron is forming an ascending triangle, a bullish continuation pattern, which may mean it is setting up for better performance.
- Bitcoins movements are still likely to have a large impact on those of altcoins including Tron. A bearish move from here for Bitcoin would likely result in the ascending triangle for Tron breaking down.
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