Tron price analysis: TRX fails to defend support level at $0.06238

Tron has underperformed over the past 24 hours, failing to defend the major support level at $0.06238 and risks dropping below the $0.060 mark over the next few hours.

The general cryptocurrency market resumed its bearish trend yesterday, as several of the leading cryptos recorded huge losses over the past 24 hours. Bitcoin is down by 4.6% over the past 24 hours and is trading just above the $33k level.

Tron is another leading cryptocurrency that suffered losses yesterday, losing nearly 5% of its value in the process. TRX ended yesterday trading at $0.06404, reversing the gains it recorded on Tuesday.

The losses continued today, with TRX failing to defend a major support level around $0.06238. In the short term, Tron looks likely to record more losses over the next few hours and days. With analysts expecting Bitcoin to drop towards $31k, TRX and other altcoins might also decline in the coming days.

#Bitcoin still acting inside the range, no decision has been made.

Losing $33K range and I'm looking at $31-31.4K. pic.twitter.com/60AKAwb7GC

— Michaël van de Poppe (@CryptoMichNL) July 8, 2021

TRX price outlook

For the day ahead, the TRX/USD 4-hour chart is looking very bearish at the moment. TRX has dropped below its 100-day SMA (0.06356) and risks recording further losses over the coming hours.

The failure to defend the major support zone at $0.06238 has seen Tron drop below the $0.06200 mark. The bulls would now be forced to defend the next major support level just above $0.0600. An extended bearish sentiment from the market could drag TRX below $0.0600 for the first time in two weeks.

TRX/USD chart. Source: Coinalyze

However, if TRX is able to get out of its current bearish trend, it could reclaim its support level at $0.06238. This would allow it to extend its run and target the next resistance point at $0.06476. At the moment, TRX’s price is far off from its 23.6% FIB Retracement Level at $0.0787. Unless it gets major support from the market, it is unlikely that TRX could rally towards that region in the coming hours.