• Francisco Hernandez

Tron 3% Above BTSE Initial Opening Price

Introduction


Even though there is not a lot of data on Tron at the moment, I thought I would take a jab at it. Tron was recently added to BTSE on July 14th, 2020. In this article, I take the typical approach to my analysis and look at moving averages, bollinger bands, Fibonacci levels, heikin-ashi technique, and a few indicators. I look at the 1-hour chart. Tron is currently 3% above the initial opening price and is on the rise.


Moving averages


As is typical from a new exchange listing, price is usually pumped and then dumped. This is evident across all the charts in this article. As can be seen, price rode the 20-period moving average (MA; red) until it dumped. Notably though, price has been rising since, making a series of higher highs and lows since the dump. Price met the 50-period MA (orange) and managed to hold its ground. Following that, price met the 100-period MA (yellow) and the same thing occurred. Currently, price is above the three mentioned MAs and above the 200-period MA (green), which only formed a few hours ago. This suggests that Tron has three MA levels that could act as support.

Moving averages


Bollinger bands


Bollinger bands look at volatility. As can be seen, price rose significantly a few hours after its listing on BTSE and then dropped significantly. After that, price remained mostly within the bands. What is interesting is what has been happening the last few hours. Price rose significantly, breaking past the upper band, then corrected but held at the 20-period moving average (MA; red). Price then broke back above the upper band, and again is holding at the 20-period MA. The second spike though was lower than the first, which suggests slowing momentum to me. The other indicators below should provide more information on where price will go from here.

Bollinger bands


Fibonacci retracements


This is interesting. Price is currently sitting above the 50% retracement line. That is, from the all-time-high of ~$0.0352084 (depending on where you look), price has recovered at least half the value from zero. The 50% retracement area may act as a support, but it has yet to be established. Price is above it but has yet to test it. Only recently, within the last day, has price risen above this level.

Fibonacci retracements


Heikin-ashi technique


As I suspected from the bollinger bands, momentum appears to be slowing. I can tell because the current candle is red with a bearish bias (no upper wick). Tron could be forming what is known as an M-top. These form when price spikes up as it did before, falls, and spikes again but fails to make a higher high. This is what I suspect may be going on at the moment. However, I want to see what the indicators below have to show.

Heikin-ashi technique


On balance volume


The on balance volume (OBV) is showing almost an opposite picture as the charts above. While the charts above show a general increase to the upside across the last two weeks, the OBV is showing that is has slowly been going downwards. However, only within the last day has the OBV been rising. It has made a higher high but is currently pointing downwards.

On balance volume


Chaikin money flow


The Chaikin money flow (CMF) matched the charts above a little closer. It shows a general upward trend, even breaking above the zero line, suggesting increased buying pressure. While the CMF did make a few higher highs and lows, it has recently failed to do so. Currently, the CMF is below the zero line and has made a lower low when compared the last 48 hours.

Chaikin money flow


MACD


The MACD tells a different story. The MACD shows a general increase towards the upside. It has been making a series of higher highs and lows and currently sits above the zero line. The MACD line (blue) is over the signal line (red) but is pointing downwards. This chart is quite divergent when compared to everything else.

MACD


Conclusion


Currently, Tron is behaving in an interesting manner. Some charts suggest a downward trend on the way, while others are more bullish. This divergence is present in almost every other chart. The upward trend could also be attributed to the recent pump in Bitcoin's price. This likely explains the current uptrend in some of the charts. However, to be surer of this, a correlation could be done to assess the relationship between both Bitcoin and Tron.

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