Tron (TRX) – Could experience further weakness below the broken trendlinePosted on Sunday, February 13 2022 at 9:01 pm GMT+0000
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 24th 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 12th low and the February 2nd high. By clearing this area, they will drive the price further down towards the February 3rd 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 5th inside swing high at 0.0662. Beyond that, the rally will gear up towards the 0.0716-0.0720 zone marked by the February 10th and the January 20th 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.