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Tron retests key resistance zone, bulls can re-enter at these levels

2min Read

Tron’s [TRX] pullback could extend to the confluence area near $0.06400. If the support doesn’t crack, recovery is feasible.

Tron retests key resistance zone, bulls can re-enter at these levels

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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

  • Price hit a key daily bearish order block. 
  • Exchange long/short ratio favored sellers. 

Tron [TRX] saw aggressive demand on 26 April after hitting a key demand zone and bullish order block near $0.06400. The demand saw the token rally to key resistance and bearish order block at $0.06800. 

However, sellers were already present at press time, suggesting that bulls could face the challenge of cracking the price ceiling. 

Is your portfolio green? Check TRX Profit Calculator 

A recent report highlighted the precarious state the TRX is in as sentiment and development activity declined.

Coupled with the price ceiling at $0.06800, the token’s value could witness downward pressure unless  Bitcoin BTC reclaims $30k.

Will the pullback extend?

Source: TRX/USDT on TradingView

The bearish order block at $0.06800 has been a local price ceiling for the past two months (March and April). Previous price rejections at the obstacle led to drops that extended to the ascending trendline resistance (white) or the demand zone near $0.06500. 

At press time, the price action hit the price ceiling, and sellers were already out to sink TRX. As such, TRX could drop to the support level and bullish order block of $0.06400 (green). Notably, the level also lines up with the ascending trendline support. 

Thus, a retest of the confluence support area could offer a new buying opportunity with a good risk ratio, especially if TRX rebounds to the price ceiling. 

A direct close above the hurdle at $0.06903 and subsequent surge will invalidate the above thesis. Such an upswing will tip bulls to aim at $0.07200. But they must clear another obstacle at $0.07044. 

At the time of writing, the RSI (relative strength index) faced rejection at 60-level, highlighting easing buying pressure. In addition, the OBV (On Balance Volume) continued to make lower lows since 1 April – indicating limited demand for the asset in the same period. 

Most speculators bearish on the asset

Source: Coinglass

Read Tron [TRX] Price Prediction 2023-24 

According to Coinglass’s exchange long/short ratio, shorts dominated at 52.90% over longs in the past 12 hours. It shows most speculators were bearish on the asset in the mid/long term. 

On the other hand, TRX’s funding rate fluctuated in the past few days. But funding rates were relatively negative from 30 April, which could exert more downward pressure on the token. But BTC’s upswing and a cross into the $30k zone could spoil sellers’ efforts.

Source: Coinglass


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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