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Tron: Is the bullish rebound enough for an uptrend?

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Tron maintained its uptrend by bouncing off a support level at $0.0857. However, the on-chart indicators suggested this might be a pullback before further retracement.

Tron: Is the bullish rebound enough for an uptrend?

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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.

  • Bulls curtailed the bearish retracement with a bounce off the support level. 
  • Negative funding rates could hand sellers a short-term advantage. 

Tron [TRX] maintained its uptrend by bouncing off a support level at $0.0857. However, the on-chart indicators suggested this might be a pullback before a break of the level and a continuation of the bearish retracement.


How much are 1,10,100 TRXs worth today?


Meanwhile, Bitcoin [BTC] continued to move higher, hitting $28.2k before dropping to $27.9k, as of press time.

Bullish uptrend could be at risk

Tron TRX price chart

Source: TRX/USDT on Trading View

The 5% drop from the $0.09 price zone took TRX to the nearby support level at $0.0857. Despite the rebound off the level, the RSI (Relative Strength Index) and CMF (Chaikin Money Flow) pointed to growing selling pressure.

The RSI dropped swiftly below the neutral 50 to highlight a loss of bullish momentum. Similarly, the CMF flipped negative, revealing significant capital outflows.

These signs pointed to mounting selling pressure that could curtail the bullish advance.

If bears break below the $0.0857 support, sellers can target the higher low of $0.08 to $0.082. A successful defense of the support level by bulls would see a continuation of the bullish rally toward $0.092.

Negative funding rates could impact buyers

Source: Coinalyze


Is your portfolio green? Check out the TRX Profit Calculator


On-chain metrics from Coinalyze showed that the Funding Rate was largely negative at press time. Furthermore, the Open Interest (OI) declined despite the bounce from the support level. The OI dropped by close to 2 million over the past 24 hours.

This reflected the bearish leanings in the Futures market, which could lead to a significant price movement in favor of sellers in the short term.

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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