Analysis
Tron’s 5% pullback may not discourage TRX’s bullish stride for this reason
Posted:
Journalist
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- TRON had a bullish structure on the higher timeframe price chart
- The slow move past the weekly chart’s resistance signaled bullish intent and long-term bulls can be confident in their conviction
TRON [TRX] was in a strong uptrend on the one-day chart. It has slowly but steadily worked its way past the $0.08-$0.09 band of resistance and showed good prospects of making further gains.
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A recent report from AMBCrypto dated 8 October noted that TRON’s technical indicators leaned bearish. A pullback to $0.085 support has been in progress for a week. This key level could dictate whether TRX can rally higher this week, and Bitcoin’s [BTC] price movement could influence TRX’s path.
The bulls need to defend $0.0858 to keep hold of the gains made late in September
Source: TRX/USDT on TradingView
The price report pointed out that a drop below $0.085 could see TRX retrace to $0.082. This was a higher low on the daily chart that TRX posted on 21 September. A move below this level would shift the currently bullish market structure to bearish.
The On-balance Volume (OBV) has been in a steady uptrend throughout 2023. It was interspersed with deep pullbacks, just like the price. It was likely that this trend would continue. The Fibonacci extension levels (pale yellow) showed that the next target was the $0.101 level, the 23.6% extension. These levels were plotted using the rallies that occurred throughout June and July.
The red boxed demarcate bearish order blocks (OB) from the weekly chart. They were zones of resistance that the bulls could take weeks to breach. The next OB sat at $0.105, which suggested that swing traders could look to book profits at $0.101 and wait for another retracement for their next buying opportunity.
The steady increase in OI in September illuminated the market sentiment
Source: Coinglass
The Open Interest (OI) chart observed an uptrend in early September. It noted another move higher in the second half of the same month, with a minor pullback from 16 to 21 September. These dates coincided with the rally of TRX and its minor pullbacks. Hence, the market sentiment was firmly bullish over the past month.
The first week of October saw a steady OI as prices also hovered around the $0.085 mark. This suggested that some speculators were sidelined and waited for a reaction from the support level.
How much are 1, 10, or 100 TRX worth today?
At the time of writing Bitcoin was trading at $27.5k. The king coin has a bullish outlook in the short term as its recent losses worked to collect liquidity in the $27.2k-$27.5k region. A move higher for BTC would likely see TRX register gains too.
