TRON [TRX] has experienced a significant upward trend in the last half-year, showcasing a remarkable surge as it surpassed crucial resistance levels.
Currently, TRX is trading at a level nearly $0.2 higher than the 20, 50, and 200-day EMAs. Let’s delve deeper into the technical indicators to assess whether the bullish momentum of TRX can be sustained or if a correction might be looming.
Is TRX Poised for Price Discovery to Establish a New All-Time High?
Recently, Tron broke through the $0.16 resistance barrier, igniting a sharp rally towards the $0.22 region—close to its all-time high levels recorded on 23rd November. In the past six months, TRX has consistently displayed gains amidst a prevailing bullish sentiment in the broader market.
Following a steady uptrend, TRX underwent a consolidation phase, forming an ascending broadening wedge pattern on the daily chart. Should the price maintain crucial support levels and confirm another upward breakout, this pattern could lead to further gains during the ongoing market-wide bull run.
The primary support level is situated around the 20-day EMA at $0.19, and it is advisable for buyers to monitor this area for a potential retest. Holding this level may validate the bullish momentum and keep TRX on its current path.
In the scenario of a broader market downturn or bearish sentiment, a further drop towards the $0.17 zone (aligned with the 50-day EMA) is plausible.
The immediate hurdle stands at approximately $0.22. A successful breach above the current resistance of the ascending pattern could propel TRX into a phase of price discovery, potentially triggering a more pronounced uptrend in the days ahead.
The RSI hovers around the 62 mark, indicating a slight advantage for the bulls. Nonetheless, a dip towards 50 might indicate an imminent period of consolidation.
Insights from TRX Derivatives Data
Derivatives data related to TRX indicated a recent decline, with trading volume decreasing by 35.73% to $273.77 million and open interest dipping by 4.47% to $138.26 million. This decline suggests that traders are pausing to reassess their positions, leading to a temporary halt in the bullish trend.
The long/short ratio for TRX currently stands at 0.9693, signifying a balanced market sentiment slightly favoring the bears. On the Binance platform, the TRX/USDT long/short ratio is at 1.7064, indicating that some prominent traders are anticipating a price increase.
Traders should also keep a close eye on broader market movements, particularly those of Bitcoin, which can significantly influence TRX’s price trajectory. A resurgence of bullish sentiment in the overall market could drive TRX back into a rally scenario.