Chart by TradingView
Tron lost its momentum over the weekend, and since then, it has crashed by over 40%. The cryptocurrency now struggles to find support.
Key Support levels: $0.050, $0.040
Key Resistance levels: $0.057, $0.064
Fear started as soon as USDD lost its 1:1 peg to the dollar. Since then, TRX has failed to stop the downtrend, crashing by over 40% in less than a week. So long as USDD continues to be below one dollar, TRX is likely to experience massive sell pressure to cover the gap.
So far, the price has managed to find relief at the $0.05 support level from where it bounced higher. The resistance is at $0.057, and considering the current fundamentals, TRX doesn’t seem very likely to change its trend.
Trading Volume: The tremendous selling pressure has crashed TRX price in a short amount of time. The selling volume remains very high at the time of this post.
RSI: The daily RSI has reached oversold conditions at 23 points.
MACD: The daily MACD is in freefall. The current negative momentum continues to intensify, and the histogram is making lower lows. This can be interpreted as very bearish.
The bias for TRX is bearish.
Despite Justin Suns’ posts that USDD is overly collateralized, the market does not seem to confirm it. As long as this continues, the trend for TRX is likely to remain bearish, and the next key support is found at $0.040.
