Tron (TRX) Elliott Wave Analysis: Consolidation Phase Before the Move To $0.34?

TRON (TRX) is exhibiting a complex wave structure as per Elliott Wave Theory, with mixed signals from different timeframes. The daily chart suggests a long-term bullish trajectory with corrective consolidation, while the 1-hour chart reveals intricate short-term movements with potential for both upward and downward swings.

TRX Price Analysis

On the daily chart, TRX has progressed through waves (1), (2), and (3), with wave (4) currently unfolding. The price reached a significant high near $0.45 on Dec. 3 before making a sharp decline and correcting downward. 

This correction brought the price below the 0.382 Fibonacci retracement level at approximately $0.24 on Dec 9, suggesting this level is a pivotal support. It proceeded with declining further ultimately reaching $0.20 at its lowest point on Feb. 3 and forming a descending channel. 

The consolidation pattern indicates wave (4) may extend sideways, forming a complex structure before resuming the uptrend. TRX’s price action is characterized by alternating impulses and corrections, consistent with Elliott Wave principles, suggesting the market is in a temporary phase of indecision.

Relative Strength Index (RSI) readings on the daily timeframe show neutral momentum, neither overbought nor oversold, supporting the potential for further consolidation. The RSI hovering around the midline indicates a balance between buying and selling pressures. 

The price action is oscillating within key Fibonacci zones, with resistance near $0.35 (0.236 retracement) and critical support around $0.18 (0.618 retracement). A break above $0.35 could signal the start of wave (5), targeting levels above the previous high. The bullish outlook will be confirmed with increased volume and sustained movement above this resistance. Conversely, failure to breach $0.35 may lead to prolonged consolidation or deeper corrections, particularly if price revisits the $0.22-$0.20 support zone.

TRX Price Prediction

The 1-hour chart displays a detailed corrective structure within a potential W-X-Y formation. Currently, TRX appears to be completing wave X, with an upward move targeting the $0.34 level (0.236 Fibonacci retracement). This aligns with the corrective bounce often seen before the final leg of a W-X-Y pattern. If momentum sustains, wave X may extend further, testing the $0.36-$0.38 region, where additional Fibonacci clusters converge.

Following this potential rise, a decline in wave Y could test support levels around $0.18-$0.14, aligned with the 0.786 and 1.0 Fibonacci extensions, respectively. This downward movement would likely complete the corrective phase, setting the stage for a potential bullish reversal. Short-term RSI suggests a potential bullish divergence, hinting at an upward retracement before the next corrective leg. The RSI is also nearing oversold territory, which could support the case for a rebound.

If wave X extends beyond $0.34 and holds above this level, the bullish scenario gains credibility, potentially invalidating deeper corrections. Conversely, failure to breach this resistance could accelerate the downward trajectory towards lower Fibonacci levels. Key to this outlook will be monitoring volume spikes and RSI behavior during any breakout attempts. A sharp move with strong volume would favor the bullish case, while weak momentum could see the price quickly retrace.

Key Levels to Watch

• Immediate Resistance: $0.34 (0.236 Fibonacci retracement)
• Key Support: $0.18 (0.618 Fibonacci retracement)
• Critical Support: $0.14 (1.0 Fibonacci extension)
• Short-Term Target for Wave X: $0.34 if momentum holds
• Invalidation Zone: Below $0.14, indicating bearish continuation