Tron Price Prediction: TRX Drops 6% As Justin Sun Fights Arrest Rumours

Tron price is trading at $0.0641, down 6% on the day after Binance.US, the largest cryptocurrency exchange's American arm, announced that it will delist TRX on Wednesday. This comes despite Tron founder Justin Sun dismissing claims that he had been arrested.

There were rumours that Justin Sun was arrested in Hong KOng and held at a police station in the city state. The information first appeared on a twitter post by @FXhedgers, which has since been deleted. The news was perceived to be legitimate given the high reputation FXhedge enjoys making crypto Twitter believe in the development.

Moreover, Sun had earlier tweeted when he arrived in Hong Kong, which added credence to the possibility of being arrested in that country.

Sun responded to the news with a number "4"  that Binance CEO Changpeng Zhao uses whenever he wants characterised something as FUD.

On the same day, Binance.US announced that it would delist TRX on Wednesday citing a variety of factors including decreasing trading volume, liquidity, regulatory crackdowns in the US and a change in the asset's risk profile, among others. The platform said it was doing this to continue meeting standards of excellence.

The exchange further noted that the Tron staking service will be disabled on April 13, resulting in complete delisting of the altcoin.

Unfortunately, traders ignored reassurances from the founder and chose to react to the delisting news, causing the altcoin to drop as much as 7% in just a few hours.

Tron Price Must Hold Above $0.0640 To Avoid Further Losses

TRX had lost support offered by the 50-day Simple Moving Average (SMA) at $0.0658 and was fighting to stay above the $0.064 level, embraced by the 100-day SMA. The long lower wick on today's red candlestick was evidence that the bulls were aggressively defending this level.

Otherwise, a daily candlestick close below this level could trigger intense selling that could send TRON toward the 200-day SMA at $0.0607. A drop lower could see TRX slide below the $0.0600 psychological level to revisit the March 11 swing low at $0.05542. Such a move would represent a 13.47% decline from the current price.

TRX/USD Daily Chart

Tron's gloomy outlook was supported by the fact that it traded in a second straight bearish session with an 81% increase on 24-hour trading volume which now stands at $409,731,750. This shows that more investors are more inclined to offloading the Layer 1 token.

Also validating the negative outlook for TRX price was the sharp downward movement of the Stochastic RSI as it enters the negative region. This is an indication that the bears have taken control of the price.

In addition, the downward facing Moving Average Convergence Divergence (MACD) indicator was just about to send a call to sell Tron. This may happen in the near future once the MACD line (blue) crosses below the signal line (orange).

On the upside, if buyers succeed to hold above $0.064 and increase their buying, the ensuing hindwinds may bolster TRX back above the 50-day SMA. This would dispel any remaining selling pressure with the next logical move being a climb to the $0.06800 psychological level.