Tron (TRX) Forms Textbook Bear Signal Despite Rally in the Altcoin Market
- Tron (TRX) has been a sleeper cryptocurrency over the past few weeks.
- While it has rallied like many other digital assets like Bitcoin and Ethereum, TRX has not been focused on by many analysts.
- According to the Tom Demark Sequential, the popular altcoin is on the verge of reversing to the downside after a multi-day rally.
- Analysts beg to differ, arguing that Tron is actually on the verge of a massive upswing triggered by months of consolidation.
- Tron may be further suppressed by Bitcoin, which may lead the crypto asset market as it attempts to set a new local high.
Tron Could See Bearish Reversal: TD Sequential
According to a Telegram channel tracking signals formed by the Tom Demark Sequential, Tron is primed to move lower in the days ahead.
The Telegram channel shared the chart below on August 10th. It shows that TRX’s U.S. dollar pair on Bitfinex formed a “Sell C-13” as per the Tom Demark Sequential, suggesting that a bearish reversal is imminent.
The Tom Demark Sequential is a time-focused indicator that prints “9” and “13” candles at inflection points in the trend of an asset.
It’s important to note that previous Tom Demark Sequential signals for Tron did not play out. The last “9” candle, for instance, was followed by a 15% rally, while the last “13” candle preceded a bearish reversal when it was meant to precede a rally.
Chart of TRX's price action over the past few months with the Tom Demark Sequential from a channel tracking the indicator. Chart from TradingView.com
Analysts, though, are expecting for Tron to break higher rather than retrace. At least three traders noted that TRX is primed to rally higher as it crosses above pivotal resistance levels in the $0.021 range. One of these individuals commented:
“$TRX Looks almost ready, I reckon it could start moving next week, if that doesn’t happen, and we get more accumulation, we have another pivot coming Sept. 28th.”
Bitcoin May Outperform All Altcoins For the Time Being
Strength in the price of Bitcoin may likely suppress any opportunity Tron gets to rally.
Author of “An Altcoin Trader’s Handbook,” Nik Patel, said that altcoins could strongly underperform Bitcoin until BTC sets a new all-time high. Patel is an altcoin trading savant, garnering a large following due to his calls on this segment of the cryptocurrency market.
“Wouldn’t surprise me to see dominance now rise until BTC all-time highs (pending a confirmed Weekly breakout above $10,600) > break $20k and alts find another bottom (like Nov/Dec 2016) > they rally concurrently like March-June 2017.”
Wouldn't surprise me to see dominance now rise until BTC all-time highs (pending a confirmed Weekly breakout above $10,600) > break $20k and alts find another bottom (like Nov/Dec 2016) > they rally concurrently like March-June 2017.
— Nik Patel (@cointradernik) July 27, 2020
This was echoed by Mohit Sorout of Bitazu Capital. That analyst told Bitcoinist that BTC will underperform
Featured Image from Shutterstock Price tags: TRXBTC, TRXUSD Charts from Tradingview.com Tron (TRX) Forms Textbook Bear Signal Despite Rally in the Altcoin Market