Tron (TRX) Elliott Wave Analysis: Eyeing A Breakout Above Descending Resisistance

TRON (TRX) is currently navigating a corrective phase following its five-wave impulsive rally, with price action consolidating within a descending wedge. After peaking at $0.45 in December, TRX has been testing key Fibonacci retracement levels, searching for a breakout signal.

A breakout could push TRX toward $0.30-$0.36, while failure may lead to $0.216. RSI and volume will confirm the next trend direction.

Tron (TRX) Price Analysis

TRON’s price structure suggests it remains within a corrective phase following its five-wave impulsive rally. After peaking at $0.45 on Dec. 4, TRX entered an ABCDE correction, forming a descending wedge. Currently, TRX is hovering slightly below the 0.5 Fibonacci retracement level, which has provided key support in recent weeks.

The RSI remains neutral, signaling that momentum has yet to shift decisively in either direction. A break above the wedge’s upper boundary near $0.26 (0.5 Fibonacci retracement) would be the first sign of a trend reversal, potentially leading to a rally toward the 0.382 Fibonacci level at $0.30. Beyond that, the next resistance to watch is $0.36, which aligns with the 0.236 Fibonacci retracement level from the prior wave.

On the downside, TRX must hold above its immediate support at $0.25 to maintain its bullish structure. A failure to do so could lead to a deeper correction toward $0.216, which marks the 0.618 Fibonacci level. If bearish pressure persists, the next significant support lies at $0.153, aligning with the 0.786 retracement level.

Overall, TRX is nearing the conclusion of its correction, with a breakout above key resistance levels confirming a bullish continuation. Traders should monitor volume alongside price movements to gauge whether a breakout is backed by strong buying pressure.

Key Levels to Watch

• Immediate Resistance: $0.26 (descending wedge upper boundary)
• Major Resistance: $0.30 (0.382 Fibonacci), $0.36 (0.236 Fibonacci)
• Immediate Support: $0.25 (0.5 Fibonacci)
• Critical Support: $0.216 (0.618 Fibonacci), $0.153 (0.786 Fibonacci)

Tron (TRX) Price Prediction

The hourly chart shows TRX has been consolidating within a descending wedge structure, with multiple interactions at both resistance and support. The price has recently attempted a breakout from the wedge, suggesting a potential shift in trend.

The Elliott Wave count indicates a completed corrective phase, labeled as an ABCDE pattern, with Wave (E) marking the final low at $0.2162 (0.618 Fib) on Jan. 13, before an upward impulse.

A preliminary impulse labeled as Wave (1) has already formed reaching $0.2664, followed by a corrective Wave (2) that held slightly above the key Fibonacci support level at $0.2162.

Assuming TRX successfully breaks through the wedge resistance, Wave (3) could extend towards the 1.618 Fibonacci extension at $0.2903, with further targets at $0.3051 (2.0 Fibonacci) and $0.3156 (2.272 Fibonacci).

Given the current structure, a brief consolidation or minor pullback in Wave (4) would be expected before the final push in Wave (5) toward $0.3156 (2.272 Fibonacci)

However, failure to maintain above $0.2471 (0.5 Fibonacci retracement) could result in a retest of lower support at $0.2369 (0.236 Fibonacci level). If the price drops below $0.2277, the bullish wave count would be invalidated, signaling a potential continuation of the previous downtrend.

The Relative Strength Index (RSI) is trending higher but remains neutral, suggesting that momentum is building without entering overbought conditions.

Key Levels to Watch

• Immediate Resistance: $0.2605 (0.5 Fibonacci level)
• Key Breakout Level: $0.2664 (1.0 Fibonacci projection)
• Wave (3) Target: $0.2903 (1.618 Fibonacci extension)
• Major Resistance: $0.3051 – $0.3156 (2.0 – 2.272 Fibonacci extension)
• Immediate Support: $0.2471 (0.5 Fibonacci retracement)
• Critical Support: $0.2277 (wave structure invalidation level)