Tron has been steadily riding an ascending trendline since early April, with recent price action showing a strong bounce from this critical support level.
After completing a corrective phase that tested the trendline support, TRX appears to be regaining bullish momentum as it eyes a potential return to its recent highs.
Ascending Trendline Holds Firm
TRX/USD is currently trading at $0.2677, having bounced convincingly from the confluence of support formed by the long-term ascending trendline lows at $0.2600. This bounce confirms the strength of this support zone and suggests that bulls have successfully defended this critical area, keeping the longer-term uptrend intact.
The cryptocurrency recently experienced a corrective phase after reaching highs of around $0.2981 (the 1.0 Fibonacci level), retracing below several key Fibonacci levels including the 0.382 level at $0.2745 and briefly approaching the key psychological support at $0.2600.
The fact that price has found support precisely at this junction of the ascending trendline is technically significant, as it demonstrates respect for both historical price action and mathematical support levels.
With the bounce now underway, TRX faces immediate resistance at the 0.382 Fibonacci extension level at $0.2745. A decisive break above this level would likely open the path toward the 0.5 level at $0.2796, followed by the 0.618 level at $0.2835. These Fibonacci levels are likely to act as stepping stones on any potential move back toward the recent highs near $0.30.
What’s particularly noteworthy about Tron’s current position is the clean bounce from the ascending trendline without any significant violation. This trendline has supported the price since early April, and each test of this support has been followed by a substantial rally. If this pattern repeats, we could be witnessing the early stages of another leg up in Tron’s ongoing uptrend.
Renewed Bullish Momentum
The technical indicators for Tron are showing improving conditions that support the case for a continuation of the uptrend. The MACD indicator (middle panel) has been declining during the recent correction but now appears to be flattening out and potentially forming a bullish cross. The histogram bars are becoming less negative, suggesting that bearish momentum is weakening and potentially setting up for a shift to bullish momentum.
The stochastic oscillator (lower panel) has reached oversold territory and is now showing signs of turning higher. This reversal from oversold conditions often precedes significant price advances, especially when it occurs at a major support level like the current ascending trendline. A continued move higher in the stochastic would provide further confirmation of renewed bullish momentum.
The moving average configuration remains supportive of the overall uptrend. Both the 50-day moving average (red line) and the 200-day moving average (blue line) are sloping upward, with the 50 SMA above the 200 SMA, forming what traders call a “golden cross” formation.
This moving average alignment is typically associated with strong uptrends. Additionally, both moving averages are now converging near the ascending trendline, potentially creating a triple support zone that could be very difficult for bears to break.
