To move higher, bulls need to remain positive above $0.060, with immediate barriers likely at $0.063 and $0.066
Tron (TRX) is in a positive zone, but its 24-hour performance is still unconvincing despite bulls breaching a key resistance level to extend weekly gains.
At time of writing, TRX/USD is trading around $0.061, up 1.3% in the past 24 hours. Tron currently has a market cap of $4.36 billion and a 24-hour trading volume of $1.05 billion.
Data from CoinGecko shows that the pair is up 12.7% in the past week. However, the upward trajectory seen over the last three days has failed to take advantage of recent relief rallies. In this case, Tron is vulnerable to a breakdown to lows of $0.050.
TRX may also struggle given Bitcoin is finding it hard to sustain a rally above the $40,000 resistance level.
TRX price analysis
Tron price is above the 20 EMA ($0.058) and is looking for a clear breakout to push towards the 50 SMA ($0.0625), which continues to cap price action close to a horizontal resistance line.
If prices breach the resistance likely to surface at $0.065, the TRX/USD pair could test $0.075 (the 23.6% Fib retracement level of the downswing from $0.170 to $0.045).
An uptick in market sentiment and fresh bids above $0.070 will allow bulls to test $0.075. A continuation of the upswing along the bullish trendline could then push prices towards the 38.2% Fibonacci retracement level ($0.093).
The 4-hour RSI is steady and looking to extend above 60 while the MACD on the same chart is in the positive zone. However, the MACD line is below the signal line to suggest a potential bearish divergence.
Though it remains in a bullish zone, TRX/USD will face increased pressure if bulls fail to hold above $0.060. A downturn for the pair could thus invite sellers who might target the 50 SMA ($0.057) and $0.054. The main support level in the short term is at $0.050.