Examining Dogecoin’s bullish setup – Is $0.42 still possible?
- TRON appeared to have a bullish market structure, but there has been weak demand recently
- Liquidation levels showed that a 4%-5% price dip may be likely in the coming days
TRON [TRX] challenged the mid-range resistance at $0.248 once again. If the bulls flip this level to support, it would offer a buying opportunity and a good chance of a 10% rally.
And yet, Bitcoin [BTC] possessed some short-term bearish momentum. Additionally, at press time, TRX bulls seemed to be weaker than they appeared.
Obstacles ahead for TRON bulls
Source: TRX/USDT on TradingView
Using the rally in November and December, a set of Fibonacci retracement levels was plotted for TRX. The 78.6% retracement level of that rally was at $0.222. It also marked the bottom of a range that TRX has traded within throughout 2025.
At press time, the price was trying to climb past the mid-range resistance at $0.248. TRX bulls have been trying to break this level for three weeks. They have been unable to flip the level to support.
As the OBV showed, there seemed to be a lack of buying pressure, evident from its slow downtrend since mid-April. This meant that the bulls’ efforts were weak, even if the price action appeared earnest. The daily RSI was consistently above neutral 50 since mid-March, showing that momentum was in bullish favor.
Without strong demand, this factor did not mean much. The trading volume has been dwindling over the past three weeks, and the OBV’s trend showed that sellers were dominant. Hence, traders should be cautious around the $0.252 and $0.255-local resistance levels.
Source: Coinglass
The liquidation map revealed that there were high leverage liquidation levels close to the price. The $0.236-$0.238 zone to the south and the $0.256-$0.258 zone to the north were the levels traders should watch out for.
The latter lined up with one of the local resistances highlighted previously. The $0.236-level was just below the local support levels established over the past three weeks. Hence, traders can expect a short-term range formation between these levels, given the dwindling trading volume.
The road to $0.236 had a higher cumulative liquidation leverage. This meant that TRON’s price would be more strongly attracted south in the coming days. A test of $0.236 could offer a buying opportunity, but caution may be warranted due to BTC’s trend over the past few days.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
