TRON: Can TRX turn $0.30 retest into a fresh breakout?
The shift in the internal structure was a sign that the retracement was over, and TRX was ready to rally toward $0.37 again.
TRON [TRX] saw a 2.87% price gain in the past 24 hours. On the 22nd of January, AMBCrypto reported that Justin Sun made an $8 million strategic investment in Riverdot Inc., bringing Riverdot’s satUSD to the TRON network.
Earlier this month, two separate integrations were announced, with WalletConnect and Blockaid. Combined with Bitcoin [BTC] challenging the $90k mark, it appeared TRX bulls are ready for the next move.
TRON retests $0.30 as support
This development was vital and also presents a good trading opportunity. The high network usage and Sun’s strategic investment added weight to the price breakout.
AMBCrypto had highlighted the importance of the $0.30 resistance nearly two weeks ago.
The situation remained bullish. The 3-day chart showed a bullish swing structure, and the recent breakout past $0.3012 represented an internal structure shift as well. The current retest was, therefore, a good buying opportunity.
To the north, the next targets were $0.324 and $0.370. The OBV has been slowly trending higher since December, but the 20-period moving average of the trading volume has been falling since October.
Increased volume would imply market conviction following the recent breakout. Another minor warning sign was the RSI on the D3 timeframe, which was at 83. This was a high not seen since December 2024.
Threat of a failed breakout
Although less likely, investors should still prepare for this scenario. If Bitcoin fails to reclaim the $94.5k local support, it could dampen the short-lived altcoin bullishness seen in January.
Additionally, falling average trading volume on TRX and an overextended RSI on the 3-day time frame could be early warning signs of a failed breakout.
Why traders should stay bullish
The long-term structure (3-day swing structure) was bullish. The breakout past $0.30 ten days ago confirmed bullish intent. The current retest is likely to be defended and will likely initiate the next leg higher for TRX.
How high this impulse move can go depends on capital flow into BTC and TRX. The $0.37 level seems to be a reasonable target.
Final Thoughts
- TRON trends would depend on Bitcoin and capital inflow to TRX in the coming days and weeks.
- A drop below $0.29 would be a warning of a deeper retracement, but as things stand, swing traders can maintain a bullish bias.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
