TRON [TRX] breaks above two-month resistance despite BTC weakness
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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- TRON’s development activity continued to tumble.
- The move above an important resistance zone could spark a wave of buying
TRON [TRX] posted gains of close to 9% in the past week. Bitcoin [BTC] was up by 5% during this time but saw more volatility than TRX. However, a plunge in BTC prices could drag TRX down. If BTC remains stable or posts gains, TRX will also move upward.
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TRX staking continued to decline over the past week and the data from Santiment was not likely to inspire confidence in investors. However, the price action showed bullish signs and lower timeframe bulls can look for trade opportunities.
The move above the bearish order block can excite buyersThe market structure of TRX has been bearish on the daily timeframe after the move below $0.066 on 7 March. Since then, the price set a series of lower highs, with the most recent one being the $0.067 level (marked in blue).
On 29 April TRON bulls forced a daily trading session close above this level, thereby flipping the structure to bullish. The RSI was above neutral 50, and stood at 61 to show strong bullish momentum. The break in market structure indicated further gains were possible.
A look at the 4-hour chart showed a bearish order block in the $0.067-$0.0677 area. On 30 April this block was broken and retested as support on 1 and 2 May. This confirmed that the bearish OB was flipped to a bullish breaker, another sign that TRX was poised for a move upward.
The OBV climbed upward over the past week, but this was not explosive. In 2023, there were times when TRX surged sharply and was accompanied by a spike in the OBV. Traders can watch out for another such spike.
How much are 1, 10, or 100 TRX worth today?
Negative funding rate and weighted sentiment showed bears in the ascendancy
The developer activity has been in a slump over the past ten days, even though TRX rallied from the $0.064 support level. Weighted sentiment was also negative despite recent gains, and the funding rate showed short positions were in the majority.
The price action showed that the $0.07 and $0.072 levels of resistance can oppose the bulls. On the other hand, a daily session close below $0.0667 will flip the structure in favor of the bears once more.