Tron (TRX) Price Tests Resistance Zones as Momentum Shifts

Source Beincrypto

Tron (TRX) price is currently exhibiting signs of bullish momentum; however, its price is down, while all the other biggest coins in the market are positive today.

While various indicators show a bullish outlook, there are also signals that point to an important possible turning point for TRX.

TRX Ichimoku Cloud Shows a Bullish Momentum

The Ichimoku Cloud chart for TRX price reveals a generally favorable outlook. Currently, TRX price remains above the Kumo (cloud), which is typically a positive signal for bullish sentiment. The cloud itself is moderately thick, suggesting a reasonable level of support below the current price if a retracement were to occur.

Additionally, the green Senkou Span A, above the red Senkou Span B, forms a bullish cloud ahead, reinforcing optimism for further gains. The Kijun-sen (red line) lies below the current price, offering support, though its flat trajectory hints at a pause in momentum.

Meanwhile, the Tenkan-sen (blue line) closely follows price action, maintaining a positive outlook for short-term momentum, though a potential bearish signal could arise if it crosses below the Kijun-sen.

Read more: 7 Best Tron Wallets for Storing TRX

TRX Ichimoku Cloud.TRX Ichimoku Cloud. Source: TradingView

The Chikou Span (green lagging line), which is positioned above the price level from 26 periods ago, further confirms that TRX’s current trend is backed by positive momentum. However, as the Chikou Span nears the current price level, it signals that the ongoing bullish momentum might face challenges and could enter a consolidation phase.

While the broader sentiment for TRX remains bullish, the asset appears to be at a pivotal point, requiring either a breakout above resistance or strong support to sustain its upward trajectory.

DMI Suggests Moderate Trend Strength

The Directional Movement Index (DMI) for Tron (TRX) provides valuable insights into the current trend strength. The yellow line, representing the Average Directional Index (ADX), is currently around 23.8, suggesting a moderate trend strength, though not particularly strong.

The blue line (+DI), which measures the strength of positive price movements, is at 11.3, indicating relatively weak buying pressure at this point. Meanwhile, the red line (-DI), which measures the strength of negative price movements, is slightly higher at 13.3, suggesting that selling pressure currently outweighs buying pressure, though not by a significant margin.

TRX DMI. Source: TradingView

The ADX, which has fluctuated considerably in recent months, shows that TRX’s trend strength has varied, with some periods of high volatility followed by more subdued phases. The current positioning of the +DI and -DI lines below 20 indicates a lack of significant momentum for either bulls or bears, pointing to a range-bound or consolidative period.

For TRX to regain a more decisive upward trajectory, the +DI would need to cross above the -DI, combined with an increase in the ADX value above 25, to signal a strengthening trend. Overall, the DMI suggests that while the broader sentiment is slightly bearish, there is room for a potential shift, contingent on increased buying pressure and an improvement in trend strength.

TRX Price Prediction: Potential Trend Reversal in Play

TRX’s EMA lines are currently showing a bullish pattern, with short-term EMAs positioned above the long-term EMAs. This setup typically indicates positive momentum and a continuation of the uptrend.

However, the short-term EMA lines are starting to turn downward. This could suggest a potential reversal of the current trend. If this downward shift continues, it may indicate a weakening of buying pressure and a transition toward a more bearish phase for TRX.

Exponential Moving Averages (EMAs) are a type of moving average that gives more weight to recent data, making them more responsive to the latest price movements compared to Simple Moving Averages (SMAs). Short-term EMA lines reflect recent price behavior, while long-term EMA lines provide a broader view of the overall trend.

Read More: TRON (TRX) Price Prediction 2024/2025/2030

TRX EMA Lines and Support and ResistanceTRX EMA Lines and Support and Resistance. Source: TradingView

If the uptrend continues, TRX will likely test its next resistances at $0.166 and potentially even $0.169, suggesting room for further gains if buying pressure strengthens.

However, if the trend reverses, as implied by the recent movement of the EMA lines, TRX may test support levels at $0.155, $0.152, or even as low as $0.1462. These support zones could play a crucial role in determining whether the bearish momentum deepens or if a rebound is possible.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Solana Price Forecast: ETF Demand and Derivatives Flows Fuel a Sharper ReboundSolana (SOL) trades above $140 after a 10% daily jump, as ETF inflows flip positive, futures open interest climbs 6.75% and on-chain TVL and stablecoin liquidity rise, setting up a potential double-bottom breakout toward the 50-day EMA at $158 if SOL can secure a daily close above $145.
Author  Mitrade
Dec 03, Wed
Solana (SOL) trades above $140 after a 10% daily jump, as ETF inflows flip positive, futures open interest climbs 6.75% and on-chain TVL and stablecoin liquidity rise, setting up a potential double-bottom breakout toward the 50-day EMA at $158 if SOL can secure a daily close above $145.
placeholder
Gold Price Forecast: XAU/USD flat lines near $4,200 ahead of US PCE inflation releaseGold price (XAU/USD) trades on a flat note near $4,205 during the early Asian trading hours on Friday. Rising US Treasury yields and upbeat US jobs data cap upside for the precious metal. Traders might prefer to wait on the sidelines ahead of the key US inflation data.
Author  FXStreet
Dec 05, Fri
Gold price (XAU/USD) trades on a flat note near $4,205 during the early Asian trading hours on Friday. Rising US Treasury yields and upbeat US jobs data cap upside for the precious metal. Traders might prefer to wait on the sidelines ahead of the key US inflation data.
placeholder
Bitcoin Pauses for Breath Above $92,000 as Bulls Weigh Next Run at $95,000Bitcoin consolidates above $92,000 and the 100-hour SMA as traders eye a breakout toward $96,450 or a potential retracement to $90,500 support.
Author  Mitrade
Dec 05, Fri
Bitcoin consolidates above $92,000 and the 100-hour SMA as traders eye a breakout toward $96,450 or a potential retracement to $90,500 support.
placeholder
Bitcoin Dips Below $88K as FOMC Meeting Spurs NervesBitcoin experiences significant volatility, dropping toward $87,000 ahead of a crucial Federal Reserve interest-rate decision.
Author  Mitrade
22 hours ago
Bitcoin experiences significant volatility, dropping toward $87,000 ahead of a crucial Federal Reserve interest-rate decision.
placeholder
Bitcoin Could Reach $50 Million by 2041 as Global Collateral, Says EMJ Capital’s JacksonEMJ Capital CEO Eric Jackson predicts Bitcoin could hit $50 million by 2041, arguing it will replace the Eurodollar system as the neutral collateral layer for global sovereign debt.
Author  Mitrade
17 hours ago
EMJ Capital CEO Eric Jackson predicts Bitcoin could hit $50 million by 2041, arguing it will replace the Eurodollar system as the neutral collateral layer for global sovereign debt.
goTop
quote