We are seeing a second consecutive day of drops for Tron as the bullish ascending triangle pattern fails to hold. On yesterday’s drops, the pattern acted as almost picture perfect support but the drop today failed to remain within the pattern.
The drop today is on low volume, and after strong performances over the past week for Tron, the price could be undergoing some mean reversion before continuing its movements to the upside.
The four-hour chart shows a clearer picture of how the bullish ascending triangle pattern broke down. After price closed near support and all the moving averages on low volume, it looked like the pattern would hold but a significant drop occurred in the follow-up candle.
The follow-up candle had a large wick on the downside showing that the bulls came rushing into the market when the price traded near $0.035 showing that current buyers consider Tron to be good value at this price.
The candle which followed this one attempted to reenter the area where the ascending triangle was formed but support effectively turned into resistance, and the current candle is experiencing a drop-off. The MACD is also approaching its centreline crossover to the downside which is a bearish signal.
The one hour chart illustrates the same as the four-hour with recent trading being sideways on low volume as the market decides which move to make next. Many altcoins tend to follow Bitcoin so the current sideways trading we are seeing on the hourly could also be as a result of this.
If Bitcoin’s next directional move is to the upside which is a likely enough case, it could very well provide Tron with the bullish momentum to surpass resistances at the $0.038 and $0.04 levels.
- Bullish ascending triangle pattern broke down.
- Upward trendline of the ascending triangle turns from support to resistance.
- $0.04 is also a key resistance level.
- Mostly flat trading at the moment as the market sets up for its next big directional move.
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Tron’s Bullish Ascending Triangle Pattern Fails to Hold was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.