As the altcoin market follows a declining trend, Tron (TRX) is down by 4.56% over the past seven days. However, the altcoin is signaling a potential turnaround from the $0.22 support level.
With an intraday recovery of 0.73%, the TRX price could hinge at a bullish reversal towards the $0.25 psychological mark. Is a bullish reversal for TRX even possible amid the broader market conditions?
Tron Eyes Recovery Within Range
Tron currently trades at a market price of $0.2291, with an intraday recovery of 0.80%. This marks the first green candle after three consecutive bearish days. During the downfall, the TRX price declined by 7.84%, breaking below the 100-day EMA line. However, the lower price reaction from the $0.22 support level hints at a potential comeback.
Previously, this support level has triggered bullish reversals, suggesting a possible recovery. However, due to the recent surge in supply, the MACD and signal lines have given a negative crossover, increasing the chances of a breakdown rally. Nevertheless, with the intraday recovery and the lower price rejection, the TRX price trend hints at a morning star pattern.
Furthermore, a bullish rebound in TRX is likely to test the overhead resistance near the $0.25 mark, forming a consolidation range between two key horizontal levels, and supporting the upside potential. The daily RSI line also reveals a minor bullish divergence, strengthening the case for a potential comeback.
Tron Network Activity Surges
Supporting the chances of a bullish recovery in Tron, crypto analyst Ali Martinez has highlighted a significant surge in network activity. According to his latest tweet, active addresses on the Tron network have increased from 1.6 million to 2.57 million. This marks a massive 57% rise in the past month.
Furthermore, the increasing user base signals a potential upcoming demand surge, which could fuel a TRX price rally. If network activity continues to rise, it may provide fundamental backing to a price breakout.
TRX Price Eyes $0.25 Breakout
As per TRX price analysis, a potential rebound within the consolidation range will increase the chances of a breakout rally. If the momentum sustains, Tron could aim for the $0.30 psychological mark in the near term.
However, if bearish pressure intensifies and the support level fails, a breakdown could drive TRX toward the $0.19 support level, extending the ongoing downtrend.