Tron is still stuck in consolidation as it formed a symmetrical triangle on its 1-hour chart. Price is currently testing the triangle support and could be due for a bounce back to the resistance at 0.07000.
However, the 100 SMA is below the longer-term 200 SMA to signal that the path of least resistance is to the downside. In other words, support is more likely to break than to hold. The chart pattern spans 0.06000 to 0.08000 so the resulting selloff could be of the same height.
RSI is turning higher, though, so Tron could follow suit while buyers regain control. Similarly, stochastic is moving up to signal that bullish pressure is in play. A bullish divergence can also be seen for this oscillator as price made higher lows while stochastic had lower lows.
The consolidation in Tron can be explained by exchanges freezing holdings until the launch of the mainnet by the end of this month. Investors could also be cautious and holding out to see how the update turns out. Any glitches could mean a downside break for Tron while a successful launch could spur another rally.
Meanwhile, the dollar has remained safely supported for the most part of the week, despite the April retail sales miss. Traders are pointing to the stronger price levels as a factor supporting tightening expectations for next month, so long positioning ahead of the actual event can be observed.
Apart from that, ever-present geopolitical tensions on trade talks are also supporting the safe-haven dollar even as any conflict with China could have ramifications for its economy. Looking ahead, Tron consolidation could carry on for the next couple of weeks until after the mainnet launch.
The post Tron (TRX) Price Watch: Waiting for a Breakout appeared first on NewsBTC.