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Tron’s Bullish Ascending Triangle Pattern Fails to Hold

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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.

Tron Daily Chart
Tron Daily Chart

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.

Tron 4hr Chart

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.

Tron 1hr Chart

Key Takeaways:

  • 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.
DISCLAIMER: Investing or trading in digital assets, such as those featured here, is extremely speculative and carries substantial risk. This analysis should not be considered investment advice, use it for informational purposes only. Historical performance of the assets discussed is not indicative of future performance. Statements, analysis, and information on blokt and associated or linked sites do not necessarily match the opinion of blokt. This analysis should not be interpreted as advice to buy, sell or hold and should not be taken as an endorsement or recommendation of a particular asset.

Tron’s Bullish Ascending Triangle Pattern Fails to Hold was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.