Connect with us
Active Currencies 14712
Market Cap $2,670,247,746,023.50
Bitcoin Share 51.51%
24h Market Cap Change $4.20

TRON in a healthy uptrend despite fear in the market, should traders look to buy

2min Read
TRON in a healthy uptrend despite fear in the market, should bulls look to buy?

Share this article

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

  • TRON has a bullish market structure on the 12-hour timeframe
  • TRX bulls have recovered from the losses the asset posted last week

TRON tested the $0.053 level of support multiple times in December. The technical indicators showed a bullish momentum and strong demand behind the asset. On the other hand, Bitcoin [BTC] faced selling pressure near the $17.3k area.


Are your TRX holdings flashing green? Check the Profit Calculator


TRON tweeted recently that they ranked second in terms of Total Value Locked (TVL), only behind Ethereum. It also has a promising burn rate which showed more green days could be in store.

Bullish breaker has been defended so far and has confluence with Point of Control

TRON in a healthy uptrend despite fear in the market, should bulls look to buy?

Source: TRX/USDT on TradingView

The Visible Range Volume Profile tool highlighted the two contextually most important levels for TRON going forward. The first was the Point of Control (red) at $0.053, and the other was the Value Area High (orange dotted) at $0.058.

At press time, the price was at the 50% retracement level of $0.0577. These Fibonacci retracement levels (yellow) were plotted based on TRX’s move down from $0.065 to $0.045.

On 26 November, TRX retested the $0.0526 level as support. Beneath this level was a bullish breaker that extended from $0.0527 to $0.0516. Since late November the price has tested this bullish breaker multiple times and has seen a positive reaction on each retest.

In recent weeks TRON has set higher highs on the price charts and had a bullish structure at the time of writing. These higher lows and retests of the bullish breaker formed a broadening ascending right-angled pattern as well. The pattern has a likelihood of witnessing a northward breakout for the price.

With Bitcoin facing some selling pressure in the vicinity of $17k-$17.3k, a pullback could offer bulls a chance to buy TRX. The RSI was above neutral 50 and showed some bullish momentum. Meanwhile, the OBV has been rising rapidly since late November to indicate strong buying pressure.

Flat Open Interest alongside rising prices did not bode well for the bulls

TRON in a healthy uptrend despite fear in the market, should bulls look to buy?

Source: Coinalyze

Although the ascending right-angled pattern generally sees an upward breakout, the flat open interest chart suggested the prices may already have reached their local top. A lack of rise in OI despite a trend in a certain direction showed weakness in the trend.


How many TRXs can you get for $1?


The liquidations chart showed a large number of long positions sniped on 16 December. Since then there were not many significant long liquidations, although some amounts of short positions did get taken out in lower timeframe surges.

Share

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.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.