Can TRX traders expect more gains after running into this level?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- The H4 market structure of TRX was bullish.
- The higher timeframe resistance zone from February marked a 10-month high.
TRON [TRX] has performed well in the markets in 2023. In March the pullback from $0.07 to $0.055 represented a 22% drop within ten days. However, the bulls have slowly fought back and made steady gains since then.
How much are 1, 10, or 100 TRX worth today?
Their inexorable march northward saw TRX flip level after level of resistance to support. At the time of writing, the prices stood at the doorstep of a band of resistance that TRX has not traded above since June 2022.
TRX was caught in an interesting tug of war but bulls have an advantageOn the daily timeframe, the market structure was bullish. This gave a bias for TRX heading into the analysis on lower timeframes.
The H4 chart showed the bullish breaker at $0.067 continued to act as resistance. Meanwhile, the H12 resistance at $0.07-$0.073 from 20 February remained a bearish stronghold.
Zooming out on the charts revealed that this level had acted as resistance to TRON back in July and August of 2022 as well. The rejection then saw TRX stumble to $0.046 in mid-November after the FTX news swept through the market.
The formation of higher lows since then, and especially over the past month, showed that the bulls had strength in the market. At the time of writing, TRX traded within a range (yellow) that extended from $0.067 to $0.071.
The RSI was at 59 and showed significant upward momentum. The CMF was at +0.13 to show large capital flow into the market.
Nevertheless, a move into the $0.071-$0.073 region has a good chance of getting rejected and bulls should be cautious of trying to buy a breakout.
Realistic or not, here’s TRX’s market cap in BTC terms
Rising buying pressure supports the idea of further TRX gainsThe Open Interest and the prices were climbing higher up the charts since 12 May. This showed speculators were bullish and the OI increase amounted to nearly $10 million. Moreover, the spot CVD was on the rise as well, showing demand behind TRX.
Overall, the bulls showed strength on the lower timeframes. A good risk-to-reward buying opportunity could present itself upon the retest of the range formation.