- TRON price seems to be avoiding the descending triangle’s bearish setup as it bounces off a stable support level.
- Investors can expect a bullish week with at least a 20% run-up to $0.072.
- A daily candlestick close below $0.0581 will invalidate the bullish outlook for TRX.
TRON price has been hovering inside a bearish setup that forecasts a massive crash. However, due to the latest developments, things are starting to flip bullish. One such significant move was TRON founder Justin Sun’s acquisition of a 60% stake in Huobi exchange.
After the collapse of the Terra-LUNA ecosystem, many founders like FTT’s Sam Bankman-Fried and TRON’s Justin Sun have been on a shopping spree, bailing out failing platforms or acquiring stakes in the industry.
This move from Justin Sun seems to have triggered a reversal for the TRX token, as it is up 6% from the recent encounter with a stable support level. Going forward, investors can expect a continuation of this outlook as crypto markets flip bullish.
TRON price turns over a new leaf
TRON price has dropped roughly 65% from its 2021 high around $0.1800 and is currently hovering $0.0623. In roughly one and a half years that took TRX to come to this level, it has set up four lower highs and four equal highs, which reveals a descending triangle setup when connected using trend lines.
This technical formation forecasts a 59% drop for TRON price if it breaks below the $0.0581 support level. The target is obtained by measuring the distance between the first swing high and the swing low to the breakout point.
However, TRON price seems to have found sidelined buyers as it retests the $0.0581 foothold, resulting in a 6% upswing over the last two weeks. Going forward, market participants can expect TRX to rally 20% and sweep the equal highs at $0.0720 for buy-stop liquidity.
TRX/USDT 1-day chart
On the other hand, if TRON price fails to stay continue its bullish ascent, things could suggest that the bears are in control. If TRX produces a daily candlestick close below $0.0581, it will invalidate the bullish outlook for TRX and trigger a 59% crash.
However, this sell-off could slowdown around the $0.0450 support level, allowing buyers to give the run-up another go.
Note:
The video attached below talks about Bitcoin price and its potential outlook, however, this is still relevant as it is likely to influence TRON price.