TRON falters its rally at local resistance, here’s why we could see a retracement
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- TRX has a bullish market structure in the near term as well as a higher timeframe price chart
- The liquidation levels noted that a minor pullback was a possibility that traders need to be prepared for
On Monday (16 October) morning, TRON [TRX] witnessed a wild ride on the price charts as Bitcoin [BTC] touched $30k and pulled back sharply. The on-chain metrics and higher timeframe trend of TRX were positive. The stablecoin dominance on the network and the network activity grew higher. You can take a deeper dive here.
Read TRON’s [TRX] Price Prediction 2023-24
A previous price report of TRX by AMBCrypto dated 10 October noted that $0.085 and $0.082 were key support levels. In the past week, we saw a dip to $0.0847 followed by a bounce to $0.088. Do the bulls have the ammunition to drive prices higher?
TRX spikes to $0.0907 and continues to reflect bullish intent
On the two-hour chart, TRX possessed a bullish market structure. Its move above the $0.0858 resistance on 15 October broke the previously bearish structure and trend of the previous ten days. At the time of writing the token was trading just below the $0.0882 resistance level.
The Relative Strength Index (RSI) saw a sharp breakout past neutral 50 to reflect the upward momentum of the past 24 hours. The On-Balance Volume (OBV) also climbed higher over the past three days to highlight buyers were strong. These were good signs. Combined with the price action they showed that TRX was likely to climb higher.
The short-term Fibonacci retracement and extension levels (pale blue) were plotted based on the move upward in late September. They showed that the next resistance levels were at $0.091 and $0.093.
Liquidation levels showed a retracement was likely
The liquidation levels from Hyblock noted that the recent spike to $0.09 wiped out a large amount of short positions. The was a $1.6 million pocket at $0.0906. However, the increase in longs in the Open Interest (OI) meant it might be easier for the price to move lower to force these longs to close.
How much are 1, 10, or 100 TRX worth today?
To the south, a larger bunch of liquidations amounting to $2.7 million sat at $0.0869. These were long positions. This level was also the 50% retracement level from the price chart of TRON.
Therefore, a move downward to $0.0869 or $0.0859 in search of liquidity could commence in the coming days. Buyers can use this information and wait for a test of these levels to look for opportunities to go long.