Tron (TRX) – Could experience further weakness below the broken trendline

Tron (TRX) – Could experience further weakness below the broken trendline

Tron (TRX) is attempting to recoup some lost ground following the aggressive sell-off on Friday that snapped the ascending trendline drawn from the January 24^th low.

However, the price appears struggling to push higher to surpass the trendline, and the recent bearish cross between the 20- and the 50-period simple moving averages is suggesting that the current recovery will likely be short-lived.

As regards the short-term oscillators, the momentum indicator is at its equilibrium level pointing down while the DI- and DI+ are bearishly aligned and diverging.

Should sellers reclaim full control, they will immediately call for a fresh test of the 0.0621-0.0615 area linked to the February 12^th low and the February 2^nd high. By clearing this area, they will drive the price further down towards the February 3^rd low at 0.0582.

Alternatively, a close above the simple moving averages and the down-sloping trendline will brighten the short-term outlook, pushing the price towards the February 5^th inside swing high at 0.0662. Beyond that, the rally will gear up towards the 0.0716-0.0720 zone marked by the February 10^th and the January 20^th highs.

To summarize, the short-term outlook for Tron is looking cloudy at the moment. Unless the price corrects above the ascending line and the moving averages, negative risks will remain elevated.