Tron is undergoing a sharp reversal today after being the best performing cryptocurrency for the past two days.
The sharp reversal comes amid a bearish downturn taking place across the cryptocurrency market.
The recent outperformance of Tron took place after it surpassed its 200 simple moving average (SMA).
The 200 SMA is commonly used to identify the long-term trend, and with Tron now trading above this level, many may be considering that Tron is now trading in an uptrend.
The reversal is taking place on large amounts of volume.
The 200 SMA will be a level to monitor for support if the downward movements continue.
$0.028 to $0.031 was an important area of consolidation for Tron during bearish market movements in August.
Price consolidated in this area before continuing its bearish downward movements.
We can see this area also coming into play in recent price action on the hourly chart.
Although price managed to break above, it quickly retraced to this consolidation zone and has since proceeded to drop below $0.028 after meeting some brief support at this point.
$0.028 is now likely to come into play as a point of resistance.
- Tron sharply reverses after being the top performing cryptocurrency for the past two days.
- Tron is trading above the 200 SMA. This is a key level to monitor if the price continues to drop.
- After a brief break above $0.031, Tron returned to a consolidation zone between $0.028 and $0.031. It has since proceeded to drop below $0.028 and looks likely to drop further.
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