Tron retests key resistance zone, bulls can re-enter at these levels
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
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- 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.
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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?
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
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.