TRON (TRX) Price Risk Narrowing

tron ,clean start) The price is in the process of verifying the $0.055 area as resistance. If it fails to reclaim it, the downside momentum is expected to continue.

TRX is the native token of the TRON blockchain created by Justin Sun. The TRON ecosystem also includes a plethora of other digital assets.

The weekly time frame outlook for TRON is bearish. TRX worth Is decreased below Descending resistance line from April 2021.

So far, the line has caused multiple rejections (red icon) which recently led it to break above the $0.055 support area. Since the area had previously acted as support since March 2021, the breakdown was a meaningful development.

Technical indicators support the continuation of the decline. weekly RSI is below 50 and declining. This is considered a bearish signal. When combined with a breakdown from the $0.055 area, it indicates that the trend is bearish.

Currently, TRON price is in the process of validating the $0.055 area as resistance. Due to the bearish readings, the TRX price forecast will most likely be a rejection followed by a drop. If this happens, the next closest support area will be at $0.036.

On the other hand, a retest of the $0.055 area and a breakout from the descending resistance line will signal that the trend is bullish.

TRON (TRX) Price Weekly
TRX/USDT Weekly Chart. source: trading view

TRX Price Faces a Confluence of Resistance at $0.055

The short-term six-hours chart shows that the $0.055 area is also a 0.5 Fib retracement resistance level, adding to its importance. TRON price moved above this (red circle) on December 14th before turning down.

Over the past 24 hours, TRX price broke above a short term symmetrical triangle. However, it is yet to rise above the $0.055 area. For the trend to be considered bullish, TRON price needs to recapture this area.

short-term Tron (TRX)
TRX/USDT six hour chart. source: trading view

To conclude, the expected TRX price forecast is bearish, predicting a decline to $0.036, due to a fairly bearish reading from the weekly time frame. Retesting the $0.036 area will negate this bearish outlook.

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