Early April trading sessions saw Tron breaking out beyond a crucial resistance level on its price chart. Updates about the native stablecoin, USDD, had the alt skyrocketing by almost 20% after retesting a resistance as a support floor.
Meanwhile, long-term investors and traders saw massive volatility on TRX’s price charts over the past couple of weeks. Tron will magnify its probability of continued fall in the coming days if the alt breaks below the mentioned critical horizontal area.
Tron – 12Hr Timeframe
The horizontal level at $0.062 presents TRX’s crucial support floor. Moreover, the level served as support, resistance, and then support early on the month, as the alt crashed to $0.0579 before rebounding. Enthusiasts should also watch the zone at $0.063 – $0.065.
The price hovered within this zone at this publication. Remember, the territory remained crucial throughout 2022. Tron plummeting beneath $0.063 will likely see further price declines in the up-and-coming weeks. Nevertheless, TRX could witness a weak rebound originating inside the highlighted zone.
Analysts plotted Fibonacci retracement areas according to the drop to $0.057 from $0.079. The graph placed 61.8% and 78.6% retracement zones at $0.071 and $0.074. According to the 12hr chart, Tron could not push beyond the latter and failed to close past the former.
With downswings seen last week, TRX saw a massive rejection at the resistance. It also suggested more plunged towards $0.062 and potentially lower.
Reasoning
The Relative Strength Index climbed past the 50-neutral and steadied beyond the area for some days. However, the indicators seemed ready to fall beneath 50 at this publication.
That means the altcoin would unlikely sustain gains seen within the past couple of days, welcoming downswings for Tron. Meanwhile, the Stochastic RSI neared the oversold area, suggesting a potential brief bounce from the $0.063 – $0.065 range.
Nonetheless, the on-balance volume didn’t decline as much as the TRX price. That showed buying volume surpassed selling pressure within the previous week.
Final Thought
TRON witnessed a bearish turn within the past few days (according to momentum and price action). That meant the alt could explore the support barrier at $0.062 in the coming days. Nevertheless, the OBV indicated that buyers boast some impetus for an upside rally.
