50 Fibonacci Retracement Emerges as Critical Support Amid Trons Decline Potential 27 Reversal Ahead for TRX

As the bear pressure intensifies, Tron is on the brink of a bearish breakdown. Can the support at $0.1261 prevent further price drops and trigger a rebound rally?
Following a significant drop due to high supply levels above $0.14, Tron has plummeted by nearly 7% this week. The failure of bullish momentum, marked by a double top pattern, is contributing to lower highs and the formation of a resistance trendline.
As the surge in supply threatens the recent bullish cycle, will the bears take control of the trend? Let’s delve into the Tron price analysis to identify potential buying opportunities.
The convergence of trendlines is constraining volatility, as depicted in the daily chart where a triangle pattern has emerged since early 2024. Despite a double bottom reversal from the resistance trendline, TRX is undergoing a significant correction.
The ongoing downtrend indicates a negative cycle within the pattern of trend continuation. The breach of the 50-day EMA and the formation of three consecutive bearish candles further confirm this downward trend. Despite the daily RSI dipping below the midpoint, suggesting a substantial influx of supply, a slight intraday gain of 0.44% is testing the broken 50-day EMA, hinting at a potential bullish recovery.
Additionally, the 100-day and 200-day EMAs serve as dynamic support levels to sustain the bullish trend.
Tron’s Total Value Locked (TVL) has surged by 13.12% from $7.195 billion to $8.139 billion, positioning Tron as the second-largest chain after Ethereum with 8.43% of the total value locked across all chains. The network has witnessed 7.52 million transactions and boasts 2.42 million active addresses, indicating robust growth.
Will Tron mount a comeback for a breakout rally? The critical support area lies at the 50% Fibonacci level of $0.12617, aligned with the 100-day EMA. The confluence of multiple support levels presents a promising buying opportunity.
A bullish reversal from the support trendline could initiate a new bullish cycle, increasing the likelihood of a breakout rally. A breakout above the overhead trendline may propel prices to the 1.618 Fibonacci level at $0.1641, representing a potential 27% increase.
Disclaimer: This article provides information and should not be construed as financial advice. The opinions expressed are solely those of the author and do not necessarily reflect those of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic bears no responsibility for financial losses.