After a consolidation phase of eleven days within an ascending triangle pattern, the TRON(TRX) price breached the neckline resistance on May 22nd. Following a retest phase, the coin price rose 8% higher and trades above the support level of $0.080. This support aligned 20-day-EMA, and a rise in trading volume suggests a strong bullish momentum. However, will this suffice to see a start to a new bull rally?
Key points
- The TRX price escaped an ascending triangle pattern with a bullish breakout on May 22nd.
- The TRX chart shows a bullish crossover of the 20-and-200-day EMA
- The 24-hour trading volume in the TRON coin is $1.6 Billion, indicating a 58% gain
Source-Tradingview
From the past swing high on May 8th, the TRON(TRX) price fell 32%, down to $0.063 in a span of three days. The TRX coin has ever since consolidated in an ascending triangle while taking support of the dynamic trendline. On May 22nd, the price witnessed a breakout above the $0.075 overhead resistance and hit back for a retest the very next day.
The post-retest rally gained 8% and surged above the $0.080 level. At this point, the 20-day-EMA and the immediate support of $0.080 act as good support zones. Furthermore, the surge in the volume activity, i.e., 58%, ensures a healthy bullish momentum.
Thus, If the bullish momentum sustains, the TRX coin could make $0.089 as its new target, retesting its previous high.
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However, failing to do so could lead the price to break through multiple supports and down to the ascending trendline.
Technical indicator
Bollinger band: The TRX price pokes the upper band of the Bollinger band indicator, suggesting aggressive buying from traders. However, this over-extended buying may need a minor correction before continuing the ongoing rally.
OBV indicator: The rising OBV slope accentuates the buyer’s interest in continuing the bull run.
- Resistance level- $0.089 and $0.092
- Support levels- $0.080 and $0.075
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