TRON [TRX] traders can watch out for a retest of this resistance
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- The presence of the 4-hour bearish order block could present TRX short sellers with an opportunity.
- Sudden volatility could derail the plans, but can also result in a far deeper drop than anticipated.
TRON dropped by close to 20% in price when Bitcoin crashed to $20k around 10 March. Since then, TRX bulls made sure the recovery was quick, however, they were unable to extend the rally above $0.069.
Read TRON’s [TRX] Price Prediction 2023-24
The indicators showed some selling pressure behind TRON in recent days, and the price action highlighted an area where the bears could initiate another move downward. If Bitcoin was able to recover above the $28k area, it could negatively impact the bearish notion presented below.
A revisit of the bearish order block could give another move downwardTRON has seen some extreme volatility over the past month. On some occasions such as 10 March, 22 March, and 12 April saw enormous 4-hour bearish candles.
These saw losses of 12%, 15%, and 6.5% respectively. Immediately after these price drops, TRX bulls were able to effect a recovery which made up almost all of these losses within a couple of days.
This suggested that TRX short sellers must be vigilant about taking profits in the event of a drop. The OBV has trended downward over the past week, which showed steady selling pressure. The RSI stood at 55 and flipped the neutral 50 mark to support recently.
Is your portfolio green? Check the TRON Profit Calculator
The $0.067-$0.068 area was highlighted in red to indicate the bearish order block on the 4-hour chart. A revisit of this region could offer a good risk-to-reward opportunity to short TRX.
The target can be the $0.0648 support, although further losses can not be ruled out especially if BTC fell below $27k.
The rising Open Interest showed bulls gained some strength in the lower timeframesThe spot CVD had been in decline over the past week, but it began to flatten out over the past couple of days.
However, the funding rate had been deep in the red on 22 April but began to recover in recent hours. Together it showed that the sentiment had been bearish, but demand was slowly creeping in. But as things stand, it was unlikely that a breakout past the $0.068-$0.07 resistance can occur.
TRON began to climb higher from $0.0645 to $0.0663 and during this time the Open Interest rose by close to $6 million. This showed that traders had some bullish sentiment on the lower timeframes.