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Identifying if Tron [TRX] is actually far from falling to its mid-week bottom again

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Source: Pixabay

Tron [TRX] has made its way into the market’s top-15 cryptos, with TRX ranked 13th on the charts. The altcoin managed to ward off market bears on 18 and 19 June, rallying by as much as 32% since its recent low on 15 June. In fact, this was despite the extended sell-off that took place on 18 and 19 June.

TRX had previously been trading within a wedge pattern, one underpinned by ascending support and descending resistance lines. However, it soon registered a strong bearish wave, one that pushed the token out of the wedge pattern.

The price bottomed out at $0.046 on 15 June, but it recorded a significant recovery rally too. The last time TRX traded near its latest low was in June 2021.

TRX was trading at $0.061, at press time. Simply put, it was up by 32% from 15 June’s lows.

Source: TradingView

A TRX price analysis also revealed that the sharp drop last week pushed the token’s RSI into oversold territory. However, significant accumulation facilitated a quick recovery, resulting in its uptick over the last few days.

Its MFI registered a slight hike, highlighting the buying pressure responsible for the uptick. The DMI indicator revealed that the bearish pressure tapered out quickly, thus paving the way for a smoother recovery.

Are the whales buying?

On-chain metrics confirmed that TRX’s rally was backed by strong accumulation. The supply held by whales metric bottomed out at 44.45% on 16 June, but improved to 44.79% by 19 June.

This is a sign that the price dropped to a level where investors perceived it as deeply oversold. Whales accumulating is a healthy sign for TRX’s price action.

Source: Santiment

The sentiment shift in favor of the bulls was also reflected by the derivatives market. The Binance Funding Rate metric, for instance, dropped sharply to -0.4875% on 15 June, before a sharp recovery in the next few days.

This was a sign of strong demand following its latest lows.

Conclusion

TRX is still trading at a heavy discount, despite its latest uptrend. The recent sell-off undid the gains it achieved since its USDD launch and the bearish performances pushed the crypto to a new 2022 low.

Nevertheless, the market is still in FUD territory. Hence, prices are still at a risk of another unexpected sell-off. TRX might extend its upside if the market sentiment improves.

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Michael is a full-time journalist at AMBCrypto. He has 5 years of experience in finance and forex and more than two years as a writer in the crypto and blockchain segments. Michael's writing at AMBCrypto is primarily focused on cryptocurrency market news and technical analysis. His interests include motorcycles and exotic cars.

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