Watch these levels as TRX forms a descending triangle
TRX is up 1.08% in the past day and 4.6% in the past week
Tron is the most decentralized network with strong fundamentals
A breakout could be imminent, but momentum indicators are bearish
Tronix (TRX/USD) is the native token powering the Tron blockchain. The network facilitates content sharing with no intermediaries, away from platforms like YouTube.
With the promise of more pay for content creators, TRX occupies an important space in decentralization. It is considered the most decentralized network in the industry. Tron has an even distribution of governance power based on a distributed proof-of-stake system.
The concept of DPoS in Tron has driven exponential growth over the years. The number of active users is on the rise in the Tron blockchain. As of the start of last month, Tron has more than 20 million wallets. The dApps hosted on the platform have also jumped more than 1,000.
Aside from the rosy fundamentals, TRX faces bearish momentum. Despite jumping 1.08% on the last day, the token is down 4.6% in the past week. At the time of writing, Tronix was exchanging for $0.066 with a market capitalization of $6 billion.
TRX trades in a descending triangle pattern
Source: TradingView
According to the daily chart above, TRX trades in a descending triangle. The price is slightly above the $0.06 support level. TRX has bounced off the top part of the triangle three times, making it a significant price reference. From the outlook, TRX could be on the verge of a bullish or bearish breakout.
In the case of a bullish breakout, the immediate resistance is at $0.07, and the long-term level is $0.08. On the flip side, $0.05 is the nearest support. However, the indicators are looking bearish.
The MACD is looking bearish with red histograms. The MACD line has crossed below the signal line. The Stochastic Oscillator is at 26. The level is above the oversold zone, meaning lower levels could be hit before any possible trend reversal.
Summary
TRX is trading within a descending triangle and may be due to a bullish or bearish breakout. The momentum indicators are looking bearish. In case of a breakout, traders should watch $0.07 and $0.05 as the immediate resistance and support, respectively.
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