Tron was previously consolidating inside a descending triangle as it formed lower highs and found support at 0.38.
Price is now breaking through support to indicate that further losses are in the cards.
The highly-anticipated mainnet launch didn’t seem to have much of an impact on price as expected.
Tron could be poised for more losses as it breaks below the descending triangle bottom on the 4-hour time frame.
Technical Indicators Signals
The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. This means that the selloff is more likely to resume than to reverse. In addition, the 100 SMA lines up with the top of the triangle to add to its strength as a ceiling around 0.042.
RSI is on the move down to reflect the presence of selling pressure, but the oscillator is closing in on the oversold region. Stochastic is also moving south so Tron could follow suit until oversold conditions are indicated. Turning higher could lead to a pullback to the broken triangle bottom or a bounce back inside the formation.
Note that the chart pattern spans 0.038 to 0.058 so the resulting drop could be of the same height.Tron had its Independence Day early in the week as it activated its mainnet following a migration to its independent public blockchain, following the beta launch at the end of May.
According to the company’s blog post, the foundation handed out “a small number of TRX during the 12-hr livestream so the members of the TRON community could test the different features of TRON mainnet.”