RSI Divergence Tease Minor Correction In TRX

The TRON(TRX) price escaped a three-month-long consolidation phase with a bullish breakout from the resistance trendline of the inverted flag pattern. The breakout rally tagged an overhead resistance of $0.09 and reverted to a retest phase; however, the RSI indicator suggests weakness in the bullish momentum despite a strong follow-up candle.

Key points

• The TRX price has gained 33% since the last week
• The TRX chart shows a double bullish crossover among crucial EMAs(20, 50, 100, and 200)
• The 24-hour trading volume in the TRON coin is $3.4 Billion, indicating a 1.2% gain

Source-Tradingview

The TRON(TRX) price resonated in an inverted flag pattern channel over the past three months, threatened the possibility of extending the prevailing downtrend.

However, amid launch of a new stablecoin USDD from TRON ecosystem, the buying interest in this altcoin has sharply risen. As a result, the TRX price gave a deceive breakout from the rising channel on May 4th, suggesting a recovery opportunity for TRON holders.

However, the following retest day of equal length teases weakness to this bullish momentum. 

Furthermore, the post-retest rally has surged the TRX price by 16.5% and breached the near resistance of $0.0882. Today, the TRX price is down by 4% and provides another entry opportunity for interest traders, with altcoin sustaining above the $0.088 mark. 

The potential rally would drive the coin price 20% higher to the $0.1 psychological mark.

Technical indicator

The TRX price shows a simultaneous bullish crossover between 20-and-200-day EMA and the 50-and-100-day EMA. The double crossover provides a strong buy signal, boosting the continuation of a bullish rally.

However, the daily-RSI shows a significant bearish divergence, indicating the coin price may offer a minor correction to the $0.075 mark before continuing the bull run.

• Resistance level- $0.09 and $0.1
• Support levels- $0.082 and $0.071

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.