Tron (TRX) Price Could Face 13% Correction if This Support Is Lost

3 weeks ago 19

Tron’s (TRX) price is seemingly set to face a potential decline as the altcoin failed to breach the resistance at $0.127.

However, this could change since the investors are confident of potential gains, which could alter the direction of price action.

Tron Investors Stand Strong

Tron’s price could be saved from a bearish outlook with the help of its investors. TRX holders continue to show faith in the asset as they refrain from selling any of their holdings. This has resulted in about 4% of the circulating supply, representing nearly 3.1 billion TRX, moving into long-term holders’ (LTHS) wallets.

Mid-term holders have not moved this $365 million supply for over a year, highlighting a significant shift. LTHs tend to be the most important cohort of any asset since they usually anchor the price during a bear market with their conviction.

The same outcome is expected at this moment as well.

This prevents any potential bearish development from strengthening, which may not occur anyway since the bearish sentiment is not strong enough.

The Average Directional Index (ADX) measures the strength of a trend in a financial market. A high ADX indicates a strong trend, while a low ADX suggests a weak trend or sideways movement.

In the case of TRX, the ADX is well below the threshold of 25.0, suggesting a weak bearish trend. This may not strengthen should Tron’s price bounce back from the support at $0.115.

TRX Price Prediction: Losses Could Be Prevented

Tron’s price is trading at $0.118, moving closer to the crucial support of $0.115. This level is critical because it coincides with the 23.6% Fibonacci Retracement. This Fib level, known as the bear market support floor, suggests massive corrections if the price falls below it.

Since TRX holders seem confident of potential recovery, Tron’s price may not fall below this line. A bounce off into recovery is the more likely outcome, which would help the altcoin regain the support of 38.2% Fib.

But if Tron’s price falls below it, the drawdown could extend to $0.112. Losing this support would invalidate the bullish thesis, as the altcoin could fall to a four-month low of $0.107.

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