Analysis

TRON bulls could push for another 5% hike given…

Due to the vertical move upward in recent hours that measured 13% from 2 June’s low at $0.0745, there was no time for prices to consolidate during this rally- could the prices retrace to fill this gap?

Published

1 year ago

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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

The price action of TRON on the lower timeframes showed strong bullish signs. The bulls were quiet last week but burst into life in recent hours to record double-digit percentage gains. On 1 June Justin Sun tweeted that the TRON network hit a record in daily transactions.

This suggested that the bulls who entered above $0.082 could be late. Risk-averse traders can wait for a retracement to the support at the $0.08 mark, which had acted as resistance on 23 May.

TRON could have another 5% move upward left in its tank

Source: TRX/USDT on TradingView

Despite the strong gains in recent hours, it was possible that the TRON bulls weren’t done yet. To the north, the $0.086-$0.088 represents a band of resistance. Both of these levels have been important in the past, having served as resistance almost exactly a year ago before TRX fell lower.

Two weeks ago, on 20 May, TRX managed to climb above the $0.07-$0.0715 resistance region. The prices rallied another 11.5% northward till 23 May. Thereafter TRX sank lower by 7.3% to reach $0.074 on 1 June. This was a region where the prices had consolidated on 21 and 22 May.

Due to the vertical move upward in recent hours that measured 13% from Friday’s low at $0.0745, there was no time for prices to consolidate during this rally.

The RSI spiked into the overbought territory to reflect extreme bullish momentum. The OBV also noted a significant bump upward to reflect demand behind TRON.

Data pointed toward profit-taking above the $0.0825 mark

Source: Coinalyze

The Open Interest rose by $28 million as the prices swept past the $0.08 mark. This was indicative of firm bullish sentiment from speculators looking to profit from the upward move. The large increase in OI came just after the 1-hour candle that closed at $0.0822.

Since this candle, the OI rose by $17 million, representing the meat of the OI spike. Meanwhile, TRX has risen only by 1.7%. Could they be late to the party?

Read TRON’s [TRX] Price Prediction 2023-24

The spot CVD certainly suggested so. After the large green 1-hour candle previously mentioned, the Cumulative Volume Delta dropped swiftly.

There was a contrast between the outflow on the TRON spot market, and the influx of money in the futures market.

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