Analysis
TRON retains strong bullish sentiment, traders can take profits at these levels
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Journalist
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 strong bullish structure and momentum
- The bulls could look to take profits and wait for the next move instead of FOMOing in
TRON [TRX] was witness to a strong short-term bullish structure and sentiment. It also saw considerable on-chain growth in recent weeks and a large increase in total value locked (TVL). TRON also formed high-profile partnerships, which are covered more in-depth here.
Read TRON’s [TRX] Price Prediction 2023-24
A recent AMBCrypto analysis dated 17 October pointed out that a retracement to the $0.0869 zone was a strong possibility. But only a dip as low as $0.0874 materialized before the bulls seized control of the market.
The brewing bearish divergence might have an impact
Source: TRX/USDT on TradingView
The Relative Strength Index (RSI) formed a series of lower highs while the price pushed higher, forming a bearish divergence on the 4-hour chart. Yet, this divergence does not imply a reversal would be immediate. Instead, it suggested that the market could be overextended.
The On-Balance Volume (OBV) has climbed higher over the past week and reflected hefty buy volume in the market. The flip of the $0.0883 level from resistance to support over the past week was an encouraging sign for the bulls.
The Fibonacci levels (blue) noted that the local high at $0.091 and the 23.6% extension level at $0.093 were bullish targets to watch out for.
Data from other platforms support the idea of a firmly bullish TRX
Source: Hyblock
The Cumulative Liq Levels Delta stood at $14.17 million. The high positive value meant bulls stood to lose much more than the bears in the scenario of adverse market conditions. Furthermore, it was a sign that we could see a reversal at key liquidation levels as the market corrects and hunts for more liquidity.
To the north, close to $1.5 million worth of short liquidations were present at the $0.0902 level and $1 million at $0.091. These levels were close to the ones from the Fibonacci levels, giving traders added confluence for their take-profit levels.
Source: Coinalyze
The data from Coinalyze showed a rising Open Interest chart. This was accompanied by a steady uptrend on the spot Cumulative Volume Delta (CVD). This was another sign that the market sentiment was bullish in the near term and the rally was backed by genuine demand.
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Since the market could be overextended already (in the short-term) traders not in a position can wait for a pullback to re-assess. Meanwhile, bulls who entered lower on the chart can use these levels to their advantage.
