TRON is showing similarities to XRP before its bull run in 2017

06 Jun, 2019
by Lourens Pepler
Price Analysis
TRON is showing similarities to XRP before its bull run in 2017

TRON is showing similarities to XRP's price performance in January 2017. TRX today is following the same structure as XRP did in the months towards the bull run. Chepicap analyst Lourens Pepler takes a deeper look into what might be ahead for TRON if this trend continues. 

Highlights:

- We look at XRP in January 2017

- 4 noticable events before the bull run

- TRON following similiar structure

If we start off by looking at XRP and its last downtrend in early 2017, we are able to spot 4 events that lead to the breakout of the downtrend.

XRP/BTC chart provided by Tradingview

On 12 January, we can see that XRP topped out and reached a peak on price and momentum. Taking a look at RSI, we notice that not long after price topped out, momentum entered its bear phase by moving below 50 on RSI. As we know 50 RSI acts as resistance during a downtrend, which we can clearly see is the case.

On the 9th of February XRP attempted to break resistance. Although it was successful on momentum, price failed to break through resistance, indicating that price was overextended. What followed was another downtrend, until divergence started forming. Divergence is a reversal indicator, and is used to identify tops and bottoms of strong trends.

The next event that occured was when price and momentum both managed to break through resistance. Price broke through the red downtrend line and RSI moved above 50, both indicating that its leaving the bear phase and entering its bullish phase.

After breaking through resistance, price fell back down to the resistance line, which now turned into support. We can see that RSI momentarily went below 50 as price made its way to support. When it found support, what followed was the bull run of 2017 for XRP.

XRP/BTC chart provided by Tradingview

TRON in 2019
Now moving over to TRX in 2019, we notice similarities with all 4 events occuring for TRX this past few months. Price peaked along with momentum. RSI moved below 50 not long after the peak. It then attempted to break resistance halfway through, before returning to the downtrend. Divergence formed after a strong downtrend, indicating a reversal. Next up both price and momentum broke through resistance and is now trading above it.

TRX/BTC chart provided by Tradingview

If TRX will continue to mimic XRP, we should now expect TRX to retrace a bit while we wait for RSI to make a turn below 50. What will then follow, is a massive bull run for TRX. Some targets for this bull run will be the high of the previous cycle, which is around 1000sat, and after that we have the high of the cycle before that at 1500sat.

TRX/BTC chart provided by Tradingview


Do you think TRON will continue to copy XRP with this structure, or can TRON find its own path? Let us know what you think in the comments below!

Disclaimer: Keep in mind this not investment or trading advice, just the opinion of our analysts. As always, do your own research, make your own decisions.

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