Tron (TRX) is higher when writing, stable on the last week of trading, and recovering after losses of 2022. So far, TRX is up 58% from 2022 lows, bottoming up and attempting to shake off losses.
Notably, though prices consolidated last week, it is within a bullish formation, closing above August 2022 and February 2023 highs.
This breakout suggests the trend may change to favor optimistic buyers angling for more gains in the days ahead.
Based on this candlestick arrangement, traders may search for entries to double down on every push lower to retest primary support at February 2023 high.
Burning More tron
Several fundamental factors could support TRX bulls in the days ahead.
For now, the Tron Foundation is persistent in its effort to burn tokens. Tron regularly destroys TRX, reducing supply and supporting prices due to the resulting supply and increasing demand.
On May 27, over 14 million TRX were destroyed, following another burning of over 17.3 million TRX on May 26.
In each instance, the production ratio remains in the negative zone meaning the network is burning more TRX than it is being produced. TRX is becoming more deflationary and scarce, which could significantly drive the coin higher.
Still, there are concerns about TRX and if it is a commodity as the project claims. The United States Securities and Exchange Commission (SEC) recently charged Justin Sun, the co-founder of Tron, with fraud and violating the country’s securities law.
TRX Price Action
TRX is in a bullish breakout formation, rallying above February highs at $0.073. Prices peaked at around $0.080 last week before cooling off.
However, primary support lies at $0.075 as a bull flag forms.
Aggressive traders can look for loading opportunities if prices trend above the $0.075 and $0.073 support zones. Any dip could see TRX soar to $0.080, the immediate buy target.
Conservative bulls, on the other hand, may wait for a clean breakout above $0.080 before looking to ride the trend, targeting May 2022 highs at around $0.090.
Any high volume break below the $0.073 and $0.075 zone cancels this preview. TRX may slip to $0.065 in that case, confirming that the recent break above was a bull trap.
Technical charts courtesy of Trading View.
Disclaimer: The opinions expressed do not constitute investment advice. If you wish to make a purchase or investment we recommend that you always conduct your research.
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