The past seven days have seen Tron’s price against Tether (USDT) plummeting by 14% as its price tag dropped from 0.02767 USDT to the current 0.02374 USDT.
Take home points
Let’s have a quick round-up before we get into the the ins and outs of the price movements.
- The past week has generally seen Tron struggling as it lost value by 14%.
- The trendline is suggesting a possible strong reversal of the bearish trend.
- Almost all the major indicators are pointing towards a possible continuation of the bullish trend started on the 14th making this a reasonable time to buy.
As demonstrated by the 4-hour candle chart above, the cryptocurrency started the week on a positive note as it was emerging from a bullish rally to strike the week’s high at 0.02767 on the 9th. Upon reaching the week’s high, the price embarked on a bearish direction, setting new highs and lows for the next 5 days before hitting the weeks low on the 14th at 0.02312 USDT.
AN ENCOURAGING MESSAGE FROM THE INDICATORS
The Bollinger Bands are now exhibiting the beginning of a period of low volatility as the bands are demonstrating some mild convergence since the price hit the weeks low on the 14th. The trend-line is now on the mid-line after rebounding from the lower band upon hitting the week’s low. Before the 14th, the bands went through a 5-day period of marked divergence, marking a period of high volatility which saw the price taking a steady downward direction from the week’s high.
The diverging bands, and a steady bullish trend which has seen the trend-line advancing steadily towards the mid-line over the past 2 days have a positive implication to future possibilities. The trendline may well be on a steady bullish reversal which may continue for the next few days. In the worst case scenario, the price may maintain a sideways trend for the next few days before taking another definitive move.
Relative Strength Index (RSI)
The RSI has gone through a steady bullish trend over the past two days after hitting overbought conditions as the price hit the weeks low on the 14th. Prior to this, the line started out the week close to the upper limit at 70.000, before following the bearish trend to the vicinity of the lower limit where it stayed for about three days before embarking on an upward trend. Like the Bollinger Bands, the steady upward trend indicates for a possible bullish reversal which may extend for hours or days. The worst case could be the maintanance of a sideways trend which may see the RSI line lingering around the midline at 50.0000.
Moving Average Convergence Divergence (MACD)
The Faster Moving Average is now diverging from the Slower Moving Average in a strong bullish direction. This comes in as an aftermath of a crossover made after the price went through a reversal after hitting the weeks low. Before this, the past two days saw the two lines in close proximity as the strong bearish direction was being corrected in a relative sideways trend. Prior to this period, the two moving averages had gone through a period of marked divergence as the price was going through the strong bearish trend. The current status of the moving averages concur with the previous indicators by pointing to a possible continuation of the bullish trend.
The two lines are now lingering in the oversold zone and are hardly exhibiting a possible reversal in the short-term future. The oversold conditions have been realised after a sharp bullish trend from previous overbought conditions on the 14th. Beyond the 14th, the two lines had alternated overbought and oversold conditions, consistent with the new highs and lows set by the trend-line as it was plummeting to the weeks low. By virtue of being on an upward trend within the oversold zone, the StochRSI somehow agrees with the rest of the indicators. However, by being in the oversold zone, it does provide a reasonable caution for a possible mild reversal, or an imminent lateral trend.A
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