On the daily charts, the outlook for TRON [TRX] appeared bearish, with technical analysis indicating a decline in momentum and buying activity.
Even with World Liberty Financial, associated with Trump, acquiring an extra $2.6 million worth of TRON tokens, market sentiment remained pessimistic.
The recent drop in Bitcoin [BTC] prices forced TRX below a crucial support level, prompting CryptoCrypto to analyze potential areas for buyer resurgence.
Key Technical Support Levels to Monitor
Analyst Burak Kesmeci highlighted in a post on CryptoQuant Insights two significant moving averages that investors should monitor closely.
Currently, these daily moving averages are situated at $0.26 and $0.15.
The analyst suggested that breaching the resistance barrier may lead to rapid price gains for the token.
Examining the 1-day price chart revealed a trading range (depicted in purple) in which TRX has been confined for the past month, with the range spanning from $0.274 to $0.22, and a midpoint at $0.247.
The recent market-wide selling pressure pushed TRON below the mid-range support, indicating a bearish trend.
Observations of the OBV suggested bearish signals as it displayed lower lows during the range, signaling a potential loss of the 78.6% Fibonacci retracement level coinciding with the range lows.
Despite evident bearish signals and consistent selling pressure, data from IntoTheBlock showed a continuous uptrend in daily active addresses since April 2024.
Although the long-term trend showed an upward trajectory, the 7-day active address change reflected a significant decline of -26.37%.
Overall, the bullish momentum for TRON seemed to be fading, emphasizing the importance of defending the $0.22 support level during potential retests.
Disclaimer: The views expressed are the writer’s own and do not constitute financial, investment, trading, or any other form of advice.