Tron [TRX] attempts recovery: Traders should watch out for a retest of these supports 

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

• Bulls secured $0.06700 support, reversing losses on 11 May. 
• Open interest rate increased slightly; funding rates wavered.

The crypto market is still reeling from fear, uncertainty, and doubt (FUD). Tron [TRX] lost hold of its recent high of $0.071 but steadied and rebounded at $0.06700 support. On the other hand, Bitcoin [BTC] breached $26.8k support but tried to reclaim it at press time. 

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BTC’s press time level spells more short-term downward pressure on the altcoin market, TRX included, unless it reclaims $27k and surges. 

So far, the current market sentiment has overshadowed TRX’s impressive performance in Q1. 

Here are key levels to consider in the short-term

Source: TRX/USDT on TradingView

The RSI’s value was 55 at press time – a bullish momentum that indicates buying pressure increased in the past few hours. Similarly, the OBV surged, confirming the increased demand in the same period. 

However, price action hit the key resistance level of $0.06980 at press time. Previously, a price rejection was witnessed after the price hit this level; a reversal could be imminent if the trend repeats. 

If that’s the case, TRX could correct it to $0.06700 – a key support level in the first half of May. But near-term bears must watch out for the trendline support, slightly above $0.06700 and a previous consolidation range of $0.06422 – $0.06700 (green). These levels could stall the downtrend. 

On the contrary, bulls could gain a upper hand if TRX closes above $0.06980. Such an upswing could fuel a likely retest of $0.07134 or a surge above the recent high. 

The open interest rate increased slightly

Source: Coinglass

According to Coinglass, TRX’s open interest (OI) rate was $69.73 million on 1 April. At the time of press time, the figure stood at $71.23 million, a slight increment which denotes a mild bullish momentum in the first half of May. 

However, the funding rates fluctuated in the same period, underscoring the wavering demand for TRX tokens in the same period. This could undermine a strong uptrend and offer sellers slight leverage. 

Source: Coinglass

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

On the liquidation front, about $28k short positions were wrecked in the past 24 hours, according to Coinalyze. Conversely, longs saw less than $5k worth of liquidations in the same period – showing bulls might be adamant about exiting their current positions.

The above conflicting metrics call for tracking BTC price action for better trade setups.