Journalist
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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.
- TRON has a bullish structure on the daily chart.
- The higher timeframe resistance near $0.085 could cause problems for the bulls.
TRON [TRX] posted some gains on the price chart over the past week. It rallied from $0.077 on 11 September to reach $0.0845 on 16 September, a bounce that measured 8.91%. It came alongside a Bitcoin [BTC] bounce from $25.9k to $26.8k.
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The network recorded impressive growth in recent weeks and reached the 4.8 million daily transactions milestone. Developments in 2023 meant that we could see a surge in organic demand for TRX, which can benefit holders massively in the long run. But is this sentiment reflected in the price charts?
TRX was trading within a higher timeframe resistance zone
Source: TRX/USDT on TradingView
At press time, TRX was valued at $0.08368. On the 1-day chart above, the red box represented a bearish order block from the weekly timeframe that was formed in late May 2022. This region extended from $0.076-$0.092.
The daily timeframe noted three rejections at the $0.0858 (dotted orange) resistance level in the past three months. Therefore, despite the bullish market structure of TRX on the D1 chart, it is likely that we will see another rejection at the resistance.
The RSI was at 69 and showed strong bullish momentum, in agreement with the price action structure. The OBV was in an uptrend as well. This trend stretched back to mid-March and was evidence of steady buying pressure despite the depressed sentiment across the market.
The data supported an influx of bulls in the past two weeks
Source: Coinglass
After 31 August, the Open Interest chart noted a slow but discernable rise that continued to the present day. This came alongside a rally from $0.075 in the past two weeks. Hence it was evidence of bidders and reflected bullish sentiment in the TRON market.
Source: Coinglass
Realistic or not, here’s TRX’s market cap in BTC terms
The funding rate was positive and highlighted long positions outnumbered the short sellers. It was another sign that the sentiment in the market was bullish, but the price action showed that a bearish reversal could be imminent.
If TRX can move past the $0.085-$0.09 resistance region and retest it as support, it could offer swing traders a buying opportunity targeting the $0.11 level. However, the area was a near 16-month resistance for a good reason, and bulls must exercise caution.
