While most altcoins have been heavily outperformed by Bitcoin (BTC) during the latter’s dramatic weekend price reversal, TRON (TRX) has actually held pretty well with only a slight hiccup during the volatility — and is up overall from the pre-weekend price even versus Bitcoin. A strong TRON chart looks like a clear uptrend, after its own reversal from a consistent downtrend that lasted almost all of 2019.
We start on a weekly TRX/BTC chart with Volume Profile indicator to get the lay of the land. ~TRON has been in a clear downtrend for almost the entire year, and has put in several months of bottoming after capitulating through the key support — now resistance — in red.
The area of most volume on the way up from here will comprise a major inflection zone, and Tron will have to chew through it to reach anywhere near previous highs (which may never happen).
On another weekly chart, we see the indicators support an interpretation of a clear uptrend. The histogram crossed back positive a few weeks ago, after spending most of the year churning in the negative side of the range, and now points up with a flat trajectory. Also, the stochastic RSI has now fully crossed over to the positive side; such a stoch-RSI profile in an uptrend signals that a solid base of strength is already built.
Going to a 3-day TRX/BTC chart, we likewise see bullish features and an accumulation period likely coming to a close. Volume has been growing in the last month or so, while price has been rising. The RSI has put in higher highs and lows, while the histogram is plateauing at pretty elevated levels.
Here, the moving averages are starting to cross bullish — on the high timeframe 3-day chart, an important development. Price is getting held right in a previous resistance level, but due to the clear uptrend it doesn’t look like it will hold for long.
Recalling the Volume Profile chart, there is a good 50-60% of fairly open trading area until serious resistance is met, and we could probably consider this the first real test of the current uptrend.
In the shorter term, we see on the TRX/USDT daily chart that TRON is meeting stiff resistance at $0.20 despite its strong uptrend. Heavy selling has come in at about $0.20, as the RSI starts to graze overbought conditions. TRON may need to test the $0.18 region to assure support, and relieve some of the profit-taking pressure.
But volume here still looks excellent, completely breaking the previous consolidation profile. The histogram is also breaking out of its pattern, although seems to be starting to arch down.
Overall, TRON looks to continue outperforming Bitcoin — an enticing prospect with what seems like a Bitcoin uptrend in the cards.
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