Tron [TRX] Price Stalls at $0.15 – Could Bullish Signals Be Emerging?

Tron [TRX] Price Resists at $0.15 – Are Bullish Indicators on the Horizon?

Following a rebound in the broader cryptocurrency market on Tuesday, spearheaded by Bitcoin [BTC] surging over 3% to surpass $57,000, Tron [TRX] has shown limited reaction to the positive market sentiment.

Over the last 24 hours, TRX experienced a slight decline of approximately 1%, with its price fluctuating between $0.152 and $0.155 during this period.

Despite this subdued performance, an optimistic falling wedge pattern has emerged on the TRX daily chart.

Presently, TRX is making efforts to break above the upper trendline, a move that aligns with a period of price consolidation, indicating that traders are awaiting a clearer signal before entering the market.

In the Relative Strength Index (RSI), buyer hesitance is evident. Although the RSI line has failed to confirm an upward movement after converging with the signal line, signaling a cautious approach from buyers.

A potential buying opportunity could materialize with the RSI line crossing above the signal line, lending support to TRX’s attempt to break out of the falling wedge pattern.

Furthermore, a bullish divergence has emerged in the Directional Movement Indicator, with the positive DI currently surpassing the negative DI, hinting at reduced selling activity despite buyer hesitance.

If the bulls intervene and confirm the breakout, the next target for TRX would be $0.17. Conversely, failure to breach the upper trendline could lead TRX to retest support at $0.149.

Mixed Signals from On-Chain Data

According to data from IntoTheBlock, at the current prices, 96% of TRX holders are in profits, with only 2% experiencing losses.

This data suggests that Tron is not at a high risk of profit-taking in case of a price rebound, as investors may opt to hold for greater gains.

However, there are over 5.4 million addresses that have yet to see profits. These wallets acquired TRX within the $0.15 to $0.16 range and might sell to cut losses if the uptrend falters.

In such a scenario, TRX could potentially consolidate around $0.15 if new buyers do not enter the market.

An examination of network activity indicates a bearish outlook. Despite being the second-largest blockchain after Ethereum [ETH] in terms of Total Value Locked (TVL), Tron’s TVL has decreased from $8.7 billion to its current $7.9 billion over a two-week period, as reported by DeFiLlama.

A decline in TVL could adversely impact the price, reflecting a diminishing utility for TRX.

Open Interest also reveals diminishing enthusiasm for TRX, with figures plummeting by nearly half to $120 million after peaking above $234 million in late August per Coinglass.