Tron (TRX), in addition to consistently handle 2000 transactions per seconds ahead of Ethereum’s 25 TPS and Bitcoins 3 -6 TPS, currently dominates Bitcoin and the USD in the exchange rate. Read on as we look at the technical price patterns responsible for this growth and what to look out for in the near future.
At the same time, if you would like to read our full Fundamental Analysis of TRON -TRX from January 2019, it is available also.
Technical Analysis of TRON – TRX/BTC
Monthly Chart of the TRX/BTC
A close look at the monthly chart of the TRXBTC chart above reveals how the formation of bullish accumulation in combination with a breakout of bearish accumulation switched the trend polarity from bearish to bullish on November and December 2018.
The early bullish accumulation pattern triggered on November resulted in a price increase of 141% in favor of Tron (TRX), while the breakout of bearish accumulation presented an opportunity to add a new buy order for a 71% profit.
Weekly Chart of the TRX/BTC
As shown above, the weakness of selling pressure become obvious as price breaks out of bearish accumulation patterns first on August 27 ’18 and later on September 17 ’18. Both breakout points established strong support levels at 0.00000273, and 0.00000259 which finally stood the test of time.
A bullish accumulation pattern triggered on December 3 ’18 was the last straw that broke the camels’ back as price rallied by 144%.
Further signals to add to the bullish campaign came in the form of a double bullish accumulation on 7 January and 14 January ’19.
Daily Chart of the TRX/BTC
On the second day of January ’19, a bullish accumulation pattern is fired, and like a butterfly effect, it initializes a bullish trend on the daily time frame of TRXBTC.
As the trend progressed, another signal to add to the position was fired on 23-24 January ’19 in the form of a double bullish accumulation.
About three days after the double bullish accumulation pattern, the pair started to lose steam as it approached the highest high on 0.00000858, and it quickly entered a bearish decent. This bearish decent is anticipated to end by the formation of a bullish hidden divergence, which should confirm a continuation of the bullish trend.
Technical Analysis of TRON – TRX/USD
Weekly Chart of the TRX/USD
After viewing the strength of the TRX paired against Bitcoin, let’s move on to compare it to the U.S dollar.
This time, starting from a weekly time perspective, the pair was in a bearish trend between June 2018 and December 2018 from our above chart.
A confluence of patterns in the form of a breakout of bearish accumulation and bullish regular divergence on December 17 ’18 concluded an end to the bearish trend and a new dawn for bulls.
So far the TRXUSD has increased by 65.5% gain in favor of the TRX.
Daily Chart of the TRX/USD
The above daily chart of the TRXUSD is very much similar to that of the TRXBTC. The formation of triple accumulation patterns from 05 to 07 January built confidence to enter a buy trade which resulted in a 47.74% profit. A breakout of bearish accumulation and bullish hidden divergence on January 22 ’19 confirmed a continuation of the bullish trend. Moving forward, we anticipate another signal to confirm the continuation of the bullish trend in the form of an MACD bullish hidden divergence.
Based on our multiple time frame analysis so far, the current growth in the price of the TRX will most likely be sustained, should our anticipated bullish hidden divergence pattern on the daily charts gets confirmed by either a technical bullish price action pattern or a golden cross of the MACD oscillator. This could, therefore, lead to price reversal to the 0.03575668 on the TRXUSD daily chart, and 0.00000858 on the TRXBTC daily chart.
Read more from February: EOS Technical Analysis February 2019
Read more from March: Technical Analysis of XLMUSD March 2019