Tron (TRX/USD) Pulls Back, 62% Fibonacci Support In Play
Shain Vernier • 2 min read
It has been an interesting session for the leading altcoins, with heavy participation being the lead story. Over the past 24 hours, Ripple XRP (+23.41%), Tron TRX (-13.09%), and Litecoin LTC (+10.41%) have shown robust volatility. For Tron, the strong Easter weekend uptrend in pricing is showing signs of exhaustion.
Over the past four days, Tron (TRX/USD) has rallied from a low of $0.0818 to a high of $0.1491. At press time (about 1:00 PM EST), the TRX/USD has pared these gains and is trading near 0.1200. Still, this represents a strong 50% four-day gain and suggests that market sentiment toward is growing increasingly positive.
Although the filing deadline has been delayed until May, tax season is in full swing in the United States. This year is certainly unique, given the COVID-19 pandemic, market volatility, and epic 2020-2021 rally in cryptos. The IRS has taken note, requesting a summons against cryptocurrency broker Circle. According to legal documents, personal information on U.S. taxpayers who used Circle to conduct at least $20,000 in cryptocurrency transactions from 2016-2020 is to be turned over to the IRS.
While the move by the IRS against Circle doesn’t come as a complete surprise, it does suggest that a tax-oriented crackdown is coming on the cryptocurrency industry. With the Biden tax hikes up for Congressional debate in the next few weeks, be on the lookout for more rumors and headlines facing crypto taxation.
Tron has been all over the board today. Let’s dig into the four-hour technicals and check out a key Fibonacci support level.
62% Fibby In Play For Tron (TRX/USD)
Since early last week, one of the most active cryptos has been Tron. Subsequently, the past day has brought concerted selling and a pullback to the $0.1000 area.
For the coming 24-hours, there will be one level on my radar:
- Support(1): 62% Current Wave Retracement, 0.1075
Bottom Line: Currently, the uptrend in Tron remains technically intact. As long as price holds above 0.1075, a bullish bias is warranted.
However, if we see today’s pullback extend, a buying opportunity may come into play. As long as the Weekly High (0.1491) is viable, I’ll have buy orders in the queue from 0.1080. With an initial stop loss at $0.0750, this trade produces $0.0330 (+30.5%) on a 1:1 risk vs reward ratio.