TRX Bulls Take Charge – Is a Surge to $0.30 on the Horizon?
More from the Author Dennis Gatheca
Tron (TRX) has broken out of a prolonged downtrend, signaling potential bullish momentum if it holds above $0.24 and clears key resistance at $0.273 and $0.30.
However, failure to sustain this breakout could lead to a retest of the $0.22 support level, invalidating the bullish outlook.
Tron (TRX) has recently broken out of a prolonged descending channel, sparking speculation about the start of a new bullish phase. With key technical indicators aligning in favor of an upward move, traders and investors are closely watching for confirmation of sustained momentum.
Breaking Out of the Downtrend
After reaching a high of $0.45 in December, TRX entered a corrective phase within a descending channel. The correction, following an Elliott Wave W-X-Y pattern, found strong support at $0.22, coinciding with the 0.786 Fibonacci retracement level. On February 3, TRX rebounded from this level and successfully broke above the upper boundary of the descending channel at $0.24, signaling a potential trend reversal.
The Relative Strength Index (RSI) on the 4-hour chart indicates growing bullish momentum, but it remains below overbought conditions, leaving room for further upside before a pullback occurs.
Key Resistance Levels to Watch
For TRX to sustain its breakout and confirm the bullish outlook, it must clear several key resistance levels:
Immediate Resistance: $0.273 (1.0 Fibonacci extension)
Major Resistance: $0.300 (1.618 Fibonacci extension)
Critical Resistance: $0.317 (2.0 Fibonacci extension)
If TRX maintains its position above $0.24, it will reinforce bullish sentiment and increase the likelihood of reaching the $0.30 target.
Potential Upside and Risks
The Elliott Wave count suggests that TRX has entered an impulsive wave cycle, specifically Wave (iii), which could push prices towards $0.30 and possibly $0.317 before facing a correction. If TRX fails to hold above $0.24, it may retest the $0.22 support level. A drop below $0.22 would invalidate the bullish scenario and indicate continued consolidation or further downside.
Conclusion
The breakout from the descending channel marks a significant shift in TRX’s price action, hinting at the start of a new bullish wave. However, the next few days will be crucial in determining whether this breakout can sustain its momentum. Traders should watch for price stability above $0.24 and a decisive close above $0.273 to confirm the bullish structure. If TRX successfully breaks above these levels, it could be on track for a strong rally toward $0.30 and beyond.
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