Tron bulls can advance further only if…
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- BTC’s downward spiral thwarted TRX’s bullish streak.
- Open Interest rates and buying volumes dipped.
Bitcoin’s [BTC] recent downward spiral saw Tron’s [TRX] bullish streak hit a snag. The ensuing retracement saw TRX shed over 10% as it eased from $0.094 to $0.083. But TRX’s price slump eased at crucial trendline support, confirming considerable demand for TRX.
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In the meantime, BTC was struggling to cross over the $29.5k, a crucial and previous range-low turned resistance level.
Will TRX clear this roadblock?
On the 12-hour chart, a roadblock and H12 bearish order block (OB) of $0.0826 – $0.0858 (red) coincided with the June high. There was a liquidity hunt beyond the bearish OB during TRX’s massive bullish streak last weekend.
So, bulls could still face an uphill battle clearing the roadblock, especially if BTC fails to reclaim the previous range low of $29.5k. Besides, the 61.8% Fib level of $0.0829 was another immediate resistance to clear for TRX bulls to advance further to the 78.6% Fib level of $0.088.
However, a breach below the trendline support and a subsequent session close below the 50% Fib level of $0.0794 could expose TRX to more aggressive sell-offs. The $0.07587 will be the next support in such a bearish scenario.
Meanwhile, the Relative Strength Index rebounded from the neutral level, indicating buying pressure improved. However, the Chaikin Money Flow was yet to cross the zero mark at the time of writing, showing capital inflows improved but were still below the threshold.
Open Interest and buying volumes dipped
How much are 1,10,100 TRXs worth today?
The recent TRX retracement was marked by a similar drop in Open Interest (OI) rates and CVD (Cumulative Volume Delta). It shows that the demand and buying volumes in the futures market also dipped.
Nevertheless, the CVD inched higher at the time of writing, reinforcing buying volumes improved slightly. But further TRX recovery depends on BTC crossing above $29.5k.