TRON has a neutral short-term trading outlook, with the cryptocurrency testing back towards its 200-period moving average on the four-hour time frame
The bearish head and shoulders pattern on the four-hour time frame still remains valid
The daily time frame continues to show the presence of bearish MACD price divergence
TRON / USD Short-term price analysis
TRON has a neutral short-term trading bias, with the cryptocurrency rallying back towards its 200-period moving average on the four-hour time frame.
The four-time frame continues to show a large head and shoulders pattern, with TRX / USD buyers still unable to invalidate the bearish pattern.
Technical indicators on the four-hour time frame are bullish and continue to point to further upside in the short-term.
Pattern Watch
Traders should note that the April 16th swing-high currently offers the strongest form of near-term technical resistance for the TRX / USD pair.
Relative Strength Index
The Relative Strength Index has turned bullish on the four-hour time frame and shows scope for further upside.
MACD Indicator
The MACD indicator has turned bullish on the four-hour time frame and also shows scope for further upside.
Fundamental Analysis
Tron is making gains after its CEO Justin Sun made Binance an offer to deposit 7,000 BTC worth of USDT ($40 million USDT) to buy BNB, BTC, and TRX. This was done to ‘support’ the exchange (which had plenty in reserve) after hackers were able to withdraw 7,000 BTC from its hot wallet.
Yesterday, Justin Sun also announced that TRX will be back to Top-10 in June. Although this sounds like an attempt to pump the coin, it is still possible that Sun knows more than the rest of the market.
It is also possible that Sun continues to spout hype instead of substance. Last night’s ‘generous’ offer to cover the 7,000 BTC security breach at Binance, seems to be another of his thinly-disguised and regular taunts at other cryptocurrency community members.
Sun’s regular trolling of Ethereum figures, and his go-it-alone philosophy, may pay dividends if he can create substantial adoption of the cryptocurrency – or it may backfire, leaving TRON isolated in an industry that values partnerships.
TRON / USD Medium-term price analysis
TRON has a bullish medium-term outlook, with the TRX / USD pair moving back towards key trendline resistance on the daily time frame.
Bullish MACD price divergence is still evident on the daily time frame, which could be reversed if the bullish inverted head and shoulders pattern on the mentioned time frame is triggered.
Technical indicators on the daily time frame are starting to turn bullish, following the latest rally in the TRX / USD pair.
Pattern Watch
Traders should note that the June 21st, 2018 swing-high is the initial upside target of the inverted head and shoulders pattern on the daily time frame.
Relative Strength Index
The RSI indicator is still bullish on the daily time frame and shows scope for further upside.
MACD Indicator
The MACD indicator on the daily time frame has turned bullish and is generating a buy signal.
Fundamental Analysis
In the medium term, the project looks speculative. Although it deploys an aggressive marketing strategy, its technology still suffers from security flaws. For example, the recently discovered security breach could have been used to shut down the network with just one computer.
Conclusion
TRON is attempting to recover bullish trading momentum, with short-term buyers now needing to rally the TRX / USD pair even higher to invalidate the bearish pattern on the four-hour time frame.
If buyers can ignite the inverted head and shoulders pattern on the daily time frame a bullish technical breakout rally is likely to occur over the medium-term.
Check out our coin guide for the TRON project.
TRON Chart
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