Tron is recently pulling from its lows as it trails its cryptocurrency peers and also got a boost from the latest acquisition. The TRON Foundation acquired the blockchain.org domain, likely to apply its blockchain on the data aggregation and search engine features.
However, resistance remains as the price is still in bearish correction territory. Tron is also trading below a descending trend line visible on the 4-hour time frame and is gearing up for a test. This lines up with the 61.8% Fibonacci retracement level that adds to its strength as a ceiling. In that case, Tron could still resume the drop to the lows at 0.016.
In addition, the 100 SMA is safely below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, the downtrend is more likely to resume than to reverse. The gap between the moving averages is also widening to reflect strengthening bearish pressure.
RSI is still climbing, though, so buyers could stay on top of the game for a bit longer. The oscillator has plenty of room to rise before hitting overbought levels so Tron could keep following suit. A move past the trend line at 0.020 could lead to stronger bullish pressure and a possible reversal.
Stochastic has just made its way out of the oversold region to signal that buyers are taking over while sellers take a break. This oscillator also has plenty of room to climb before hitting overbought levels, so more gains could be in the cards.
Recall that Tron has just recently acquired BitTorrent and shared its plans to leverage this platform to encourage digital content creation and seeding. This is also in line with their grander plan to decentralize the internet. The acquisition of blockchain.org marks another important milestone as big data plays a pivotal role in the technology industry.
Image courtesy of TradingView
