TRON (TRX) Price Plummets Over 6%, Will Bulls Defy Bearish Trend?

With the crypto market in a bearish phase as geopolitical tensions ripple through traditional and digital asset markets, TRON (TRX) has experienced a significant downturn in price. Amidst broader concerns over escalating conflicts in the Middle East and a risk-off sentiment gripping investors, TRX/USD witnessed a notable decline, shedding approximately 6.97% over the past 24 hours, landing at a value of $0.1144. 

TRX/USD 24-hour price chart (source: CoinMarketCap)

This decline continues a negative trend observed over the preceding week, where TRON experienced a 3.0% loss, moving from $0.12 to its current price point.

TRX Market Analysis

TRON's recent price movement reflects the broader sentiment prevailing in the cryptocurrency market. The decline in TRX/USD mirrors the downturn experienced by major digital assets such as Bitcoin and Ethereum, which also faced significant losses amidst the risk-off sentiment observed in traditional markets.

Technical indicators on the TRX/USD chart suggest a bearish outlook for the cryptocurrency. The Rate of Change (ROC) indicator, reflecting short-term momentum, hovers below the zero line, indicating bearish pressure in the market. 

TRX/USD 24-hour price chart (source: TradingView)

Additionally, Elder's Force Index (EFI), a measure of the strength of selling pressure, is significantly below zero, suggesting substantial bearish force accompanying the recent price decline.

Support and Resistance Levels

Amidst the downward movement, TRON's price has encountered a support level around the $0.114 mark, where it has previously found buying interest, leading to price rebounds. However, the current downtrend may test the strength of this support level, with a potential breach signaling further downside potential.

Resistance levels for TRX/USD are less clearly defined on the chart but could be inferred from previous swing highs. These levels, such as around the $0.14 area, represent potential areas where selling pressure has historically outweighed buying interest, presenting hurdles for price appreciation.

TRXUSD Technical Indicators

Further analysis of the TRX/USD chart reveals the utilization of additional technical indicators, including the Supertrend and Auto Pitchfork. The Supertrend indicator, marked by green and red shaded areas, signals trend direction and potential buy or sell signals. Currently, the indicator is red, indicating a bearish trend for TRON.

TRX/USD 24-hour price chart (source: TradingView)

The Auto Pitchfork, characterized by three parallel lines forming a channel, assists in identifying potential support and resistance levels within a trending market. TRX's price is currently near the lower boundary of the Pitchfork, suggesting a possible support level. However, a breach below this boundary could indicate further bearish momentum.

Overall, market sentiment for TRON remains bearish in the short term, reflecting broader concerns and uncertainties impacting the cryptocurrency market. With geopolitical tensions and risk aversion dominating investor sentiment, TRX/USD faces downward pressure, as indicated by technical indicators and recent price movements.