In the cryptocurrency industry, excessive uncertainty has had a long-term effect on the price of the digital commodity. This uncertainty was evident in the Tron [TRX] altcoin market, as its price has seen a significant increase in value over the last few days.
The data indicated a 92 percent increase in valuation from $0.0629 to $0.1209 in four days. TRX was worth $0.1150 at the time of release, with a market capitalisation of $8.44 billion.
Tron 6-hour chart
The Tron chart above shows that the digital commodity was trading around the $0.0473 price range for a long time before experiencing a dramatic spike and shooting past different levels of resistance.
The boom was already going on at the time of publication, and the market might be heading for a short-term reversal.
The divergence of the Bollinger Bands showed the market’s high uncertainty. The bands were well away, but the signal line and the 50-day moving average stayed below the price bars. This was an indication of a deep bullish economy. However, since this value has not been checked enough, the price can reverse.
The Relative Strength Index [RSI] remained close to neutral during March, however by the end of the month, more investors had entered the market. This moved the digital commodity close to the overbought region, but a reversal brought the stock back into balance. However, TRX was currently well above the overbought level, suggesting an imminent correction.
Take profit: $0.0816
Risk to Reward: 2.08
The TRX market was currently oversaturated with consumers. Traders may want to create short positions if the market experiences a price reversal.
306 Interactions, 8 today