TRON has started to reverse lower alongside other altcoins, after the popular Chinese cryptocurrency found strong resistance from just above the $0.026 level.
TRON technical analysis shows that the cryptocurrency could fall towards the $0.018 level before staging its next major upside move.
TRON medium-term price trend
TRON has started to reverse from the $0.026 level over recent days, as altcoins gave back a sizeable portion of their strong yearly gains.
TRON price analysis shows that the cryptocurrency could test back towards its key 200-day moving average before launching its next upside attack.
The TRX/USD pair recently tested the $0.026 level, which represented the 50 percent Fibonacci retracement of the 2019 trading high to the September 2019 swing-low.
Fibonacci analysis shows that the cryptocurrency could test the 23.6 Fibonacci retracement of the mentioned sequence, around the 0.018 level, before moving higher again.
It is noteworthy that a large inverted head-and-shoulders pattern is present on the daily time frame, and continues to signal a possible advance towards the 0.040 level over the medium-term.
TRON short-term price trend
The recent pullback has clouded the short-term outlook for TRX/USD pair, as a bearish reversal pattern has taken shape on the lower time frames.
Last week TRON showed tremendous upside potential, after invalidating a bearish reversal pattern.
TRON technical analysis over the short term now shows that a new bearish head and shoulders pattern has formed with a $0.06 downside projection.
According to the size of the bearish pattern, the cryptocurrency could fall towards the $0.014 level over the coming days.
The TRX/USD pairs 200-period moving average on the four-hour time frame offers the most significant near-term technical support, just above the $0.019 level.
TRON technical summary
TRON technical analysis shows that a strong downside reversal has taken place, with bears now targeting further losses below the $0.020 level. Bulls ideally need to defend the $0.017 to $0.018 technical area to avoid more heavy losses.