Is Tron presenting a new buying opportunity?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- TRX’s H4 trend has been bullish in the past three weeks.
- The volume indicator showed bulls have some cause for concern.
Tron [TRX] was trading at a level on the charts that had served as resistance on 23 May. Although prices rallied toward $0.086 in early June, the bulls could not maintain that fervor. Can they achieve a similar, or better, result this time around?
Read Tron’s [TRX] Price Prediction 2023-24
The retest of the $0.078 support zone offers a good buying opportunity for TRX bulls, targeting the $0.0818 level and the $0.0858 local high. Although the latter is more ambitious, a Bitcoin [BTC] move back above $31.5k will strengthen the conviction of buyers in the crypto market.
TRX traders are emboldened after the move to $0.08The 4-hour chart showed that the market structure was bullish once again after TRX climbed past $0.078 in recent hours. The bounce from $0.0766 to $0.0805 lasted from 6 July to 9 July, but most of these gains were erased over the past two days.
It was accompanied by the OBV taking a quick drop lower, which did not support the idea that buyers remained strong. Instead, it showed that the sellers could seize the upper hand. In contrast, the RSI, which saw a dip as well, was rising back above the neutral 50 line at the time of writing.
The trading volume remained as it was since late June. If the trading volume rises alongside a sharp price move, it would indicate a breakout. The evidence at hand, especially the price action of TRX, favored the bullish argument.
Another factor in the futures market can give bulls pauseThe slump in the OBV, although meaningful, does not sway the bullish bias by itself. Yet, a look at the 1-hour Open Interest chart showed that it was slowly falling even as Tron’s prices marched northward. This suggested that speculators were not bullish but covering short positions instead- a bearish sign.
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Once again, there was another indicator that disagreed. The spot CVD saw a positive slope over the past 12 hours as TRX bounced from the support zone, pointing toward demand behind the asset.
With indicators at odds with one another, the long idea discussed here can be heavily dependent on how BTC reacts in the coming hours.