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Analysis

TRON [TRX] climbs past $0.07, should bulls anticipate another move upward?

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There were two things that TRON bulls must watch out for. The first was a bearish Bitcoin on the lower timeframes, and the other was the retest of a bearish order block.
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TRON [TRX] climbs past $0.07, should bulls anticipate another move upward?
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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.

  • The 4-hour and daily timeframes indicated different biases for TRON.
  • Cautious traders can wait for 8 May’s price action to develop before making their move.

TRON performed well in May and the bulls were successful in forcing prices past a zone of resistance that opposed them from 10 April. TRX gained 6.5% in May, and it was possible that more gains could follow.

How much are 1, 10, or 100 TRX worth today?

There were two things that TRON bulls must watch out for. The first was a bearish Bitcoin [BTC] on the lower timeframes. The BTC rejection at $29.8k meant there was a chance that the king would see some more losses over the weekend. The second was the presence of a bearish order block at $0.07-$0.073.

Buyers break the mid-April slump to drive TRX upward again

TRON [TRX] climbs past $0.07 but should bulls anticipate another 9% move upward?

Source: TRX/USDT on TradingView

A look at the 4-hour charts showed that the price action was strongly bullish behind TRON. The price recovered well from the setbacks it suffered in mid-April, when the bulls struggled to break the $0.067 resistance.

They achieved this on 1 May. Moreover, it occurred on strong buying volume, as the OBV saw an upward move past a trendline resistance. Yet, the daily timeframe showed that things weren’t smooth and bullish for TRX.

Despite the move above the lower timeframe resistance at $0.067, the $0.00705 area was a bearish order block on the daily timeframe. Therefore, a move to $0.072-$0.073 to boost liquidity before a reversal was a possibility. Hence, both bulls and bears must exercise caution.

The evidence at hand showed bullish momentum and buying pressure for TRX, but it was unclear if a breakout past the $0.073 bearish order block can occur. Buyers can wait for a daily session close above this level, while bears can look to short a rejection. 8 May’s high and low could shed more light on the situation for the week ahead.

Short liquidations contributed to the upward move

TRON [TRX] climbs past $0.07 and bulls anticipate another 9% move upward

Source: Coinglass

The Coinglass data showed that short positions consistently saw larger volumes liquidated than the long positions. This was due to the rising TRX prices, and the move above $0.067 on 2 May and above $0.07 on 5 May.

TRON [TRX] climbs past $0.07 and bulls anticipate another 9% move upward

Source: Coinalyze

Realistic or not, here’s TRX’s market cap in BTC’s terms

The Open Interest has not seen a strong trend in May, despite the price movement past a strong resistance. This cast doubts on whether the bullish sentiment was not completely dominant. The speculators had their tug of war too, and neither camp has won yet.

A spike in OI alongside a move above $0.073 would indicate that the bulls had won the battle. The next level of significant resistance for TRON was at $0.0765.

 

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Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
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