By Franklin Smith
Tron price might experience massive pressure as eToro limits access for United States users. Tron saw its price plunging towards the red on Wednesday following news that a social trading platform eToro will delist the coin in the US. With the announcement, Tron declined by more than 8.8% to tag and intraday lows at $0.946 on 24 November from $0.1038 highs. While publishing this content, Tron (TRX) hovered at $1.68.
eToro To Limit TRX for US Users
Early on the week, eToro declared that its US users might not open new positions or access staking rewards from Cardano and eToro soon. The announcement, made on 24 November, stated that the trading platform would limit TRX and ADA for customers in the United States amid regulatory concerns. However, the statement did not disclose why they selected to single out the two digital coins.
Meanwhile, the cryptocurrency trading platform emphasized not forcing users to trim their positions, but customers cannot open new TRX and ADA positions on 26 December 2021. Moreover, staking on the two coins will end on 31 December 2021.
The news had Tron extending its last week’s plunges, confirmed by the inverted V chart formation after dropping the 50 Simple Moving Average support.
Tron’s V-Shaped Retracement Targets $0.0889
TRX had its price actions forming a V-shaped chart pattern after the token declined from its 15 November peak of $0.13. . Meanwhile, the plunges intensified during Wednesday’s sessions after eToro’s news saw the coin retesting the $0.0987 support, bolstered by the 100-day Simple Moving Average. The pattern’s downward line capped TRX’s price as the alt exchanges hands near $0.0991 at the moment.
If the pattern maintains, market players can expect TRX to complete its V-shaped top retracement, tagging 28 October lows of $0.8896, translating to an 11% plunge from the asset’s current price.
Meanwhile, the MACD moves downwards, reinforcing the bearish case. The indicator moves under the zero line towards the negative territory. Moreover, the RSI stands near the oversold area at 43.69, proving bears’ dominance.
TRX/USD Daily Price Chart
On the other side, a daily close past the 50-day Simple Moving Average near $0.1028 might catalyze an upsurge. With that, Tron can surge, retesting the resistance level at $0.1084 and 15 November peak of $1.329.
By viewimage – shutterstock.com