Tron is one of today top large-cap cryptocurrency performers with only Bitcoin Private and Noah Coin above it on CoinMarketCap’s top 100 Market Capitalization. Tron is currently up 8.26% for the day according to TradingView and looks to be building an inverse head and shoulders pattern.
Inverse head and shoulder patterns are considered trend reversal patterns, which could indicate further bullish moves ahead for Tron. This would become increasingly likely if we see some bullish movements in Bitcoin as well as this would be expected to lift the crypto market as a whole. However, if Tron becomes one of the early movers before a new bullish crypto phase, this is certainly a positive sign.
Tron recently reported on all the progress they made last month, including that the total number of accounts on the Tron network has exceeded 400,000, overtaking EOS. They also reported that the average daily transaction volume was 29 times higher than Ethereum during the same period. Also, Justin Sun’s Facebook page now has more than 1 million followers.
Is all this interest in and use of Tron now leading to an increase in its price? Let’s take a look a look at the inverse head and shoulders (H&S) pattern developing on Tron’s daily chart and analyze where things could go from here:
Tron [TRX] / USD Daily Chart
We can see here on the Tron daily chart that the inverse H&S pattern is imperfect as the candle wicks on the left shoulder are slightly lower than on the head. However, the main body of the candles does follow the structure of a H&S pattern. Today the price spiked up hitting the grey area of resistance or ‘neckline’ of the H&S pattern, which also happens to be where the 100-day simple moving average currently sits.
Tron’s price may need to consolidate a while here first, but if it can break through both the ‘neckline’ and the 100-day SMA this would certainly be a bullish move. If this were to occur, then the next area of major resistance would be between $0.032 and $0.041 which is marked in grey on the chart. This resistance area is determined by both a previous major area of price support and the 200-day SMA. If the price were to breakout and increased to this area it would mean a gain of between 13% to 47% for the price of Tron.