Tronix potential short setup as the price drops below a key support level

TRX/USDT chart and technical analysis

TRX/USDT yesterday dropped below the key support of 0.1375 and closed below this level. The recent drop was mainly driven by the massive sell-off after the BTC/USD reached an all-time high. The price has been in a bullish trend for the last 4 months, however, the market structure has turned bearish after yesterday's drop. The price made long bearish candles with imbalances and fair value gaps which indicates the bears are taking control.

The price is likely to drop further after making a correction and will probably retrace back to the 0.1400 resistance level before the drop. The 0.1400 is a key resistance and is around the 0.382 Fibonacci level from where the price is likely to drop further.

I am considering the 0.1400 resistance level for sell entry and my target for this trade would be the recent low of 0.1319. The price is likely to continue the bearish trend for an extended period.

Tronix fundamental analysis

Fundamentally, the greed index is extremely high and the sell-off will possibly continue for quite some time and the price of TRX/USDT is likely to keep dropping.

Tronix to Tether trade idea takeaways

• TRX/USDT is likely to drop as the market structure has turned bearish.
• The price will probably drop to the 0.1319 support in the coming days.
• Multiple take-profit levels have been added to secure profit along the way.
• The risk-to-reward ratio on this trade is 1:3.5.
• The entry and stop-loss prices have been placed at secure levels with the least probability of getting hit.
• Good luck!