The Tron price has been moving within consolidation mode since the latter stages of September. TRX/USD fell to its lowest levels seen since November 2018, where the price had bottomed out at the back end of the year. A demand zone runs within this territory, which has helped in preventing a free-fall. It can be seen running from $0.019000 down to $0.016000, a proven area to attract buyers.
TRX/USD at the beginning of 2019 looked very promising in terms of its recovery; the price was enjoying a strong bull run north. It had gained as much as 115% up to its highest levels seen since July 2018. Upside momentum lost much ground very quickly, after entering a significant zone of supply, within the $0.040000 territory. It has since fallen as much as 70%, following the failure to breakdown to the noted area of supply.TRX/USD daily chart.Bearish Flag Structure
Since 25 September, price action has been consolidating, forming a bearish flag structure, which is subject to a breakout. It came after the steep fall between 22-24 September; the price managed to bounce for now. The price in the last session saw a daily breakout and closure out of the flag. TRX/USD had retested a critical area of prior acting demand, which is now a supply zone, $0.016000 – 0.019000. It technically completed a breakout and retest, as a result, invited more selling.
During this current bear market, there have been several similar periods of behaviour, which have seen the bears capitalize. Since the breakout from a long-running ascending trend line in July, many; flags and pennants have formed. TRX/USD is trending heavily to the south, with periods of narrowing in terms of price action, which is then seen as another trigger for sells. Any near-term price rallies and sold in no time by the market bears.Trade Recommendation
Given the recent flag breakout, further moves to the south are still eyed. Targets of interest are seen at; $0.014000, $0.012000 and then $0.011150 a retest of the bottom area of 2018. Entry would be around the current market price, with stops placed just above the flag at $0.019000.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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