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TRON at a pocket of demand; should investors take profit or HODL

2min Read
TRON at a pocket of demand after bullish leap, investors could look to load up

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Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice

Justin Sun, the founder of TRON, announced the launch of USDD, a decentralized stablecoin on the TRON blockchain. The price of TRX climbed nearly 15% after Justin Sun tweeted the announcement. In the past few hours, the price retraced some of its gains.

TRX- 1 Hour Chart

TRON at a pocket of demand after bullish leap, investors could look to load up

Source: TRX/USDT on TradingView

In orange, from the $0.058 to $0.062, lies a range that TRX has been trading within for nearly two weeks. The previous day saw TRX climb past the range highs and flip the $0.062 level to support.

Combine this technical development with the timing of Justin Sun’s tweet and gains of 20% were seen as TRX shot upward from $0.062 to $0.075. Based on the move from $0.0618 to $0.075, a set of Fibonacci retracement levels (yellow) was drawn.

They showed the $0.066 to be the 61.8% retracement level. In general, the 61.8%-78.6% retracement levels are tested before the price resumes its prior trend. Hence, the $0.064-$0.066 area can be used to buy TRX, should the price revisit this area.

Rationale

TRON at a pocket of demand after bullish leap, investors could look to load up

Source: TRX/USDT on TradingView

The Awesome Oscillator and the RSI showed that the strong bullish momentum had weakened and come to nearly a standstill in the neutral area. However, the RSI was climbing back above the neutral 50 line at press time. The AO also stayed above the zero line.

The buying volume of the past couple of days has been large, and the CVD reflected this as it showed enormous buying pressure. At the time of writing, the pullback forced the CVD to show selling pressure.

Conclusion

The $0.064-$0.066 area could be a good place to look to enter long positions on TRX. However, Bitcoin is also likely to have an impact on TRX prices in the short term. Bitcoin faces some resistance at the $40.8k area, and TRX at the $0.069 mark. If they can climb past these levels, the next few hours of trading are likely to be bullish.

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Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
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