Tron (TRX) Shows Potential Amid Bullish Patterns, Investors Cautioned
The Bottom Line
Tron (TRX) has been showing its strength in recent weeks, recording double-digit gains. After a convincing jump from the support mark at $0.115, a bullish pattern formed in the daily chart. But can the bulls continue this uptrend? A look at the key indicators and market movements provides insight into what TRX investors should consider before deciding on a long-term position.
Market Analysis and Key Indicators
Tron recently broke through a crucial resistance mark, but is struggling to support the recent rally with high trading volumes. The cryptocurrency is currently trading near $0.128, which represents an increase of over 2% within a day. But the question remains: Can the TRX bulls maintain this uptrend?
Technical Analysis
In May, the TRX bulls found new strength at the support mark of $0.111, leading to an increase of over 11% in the last two weeks. This allowed TRX to break through the critical resistance mark of $0.127. Current price movements have formed an ascending channel pattern in the chart. If the price remains above the $0.127 support mark, TRX could continue its uptrend. The first significant resistance mark in this case is at $0.135.
MACD and Volume Oscillator
The Moving Average Convergence Divergence (MACD) confirmed a strong momentum shift in favour of buyers with its jump above the zero line. However, the volume oscillator shows a bearish divergence to the TRX price, indicating a possible weakening of the uptrend.
Funding Rates and Open Interest
According to Coinglass data, TRX’s funding rates are in a slight downtrend and were even briefly negative. This suggests a declining interest from investors in the futures market. Nonetheless, open interest recorded an increase of over 12% in the last 24 hours, coinciding with the price increase.
Influence of Bitcoin on TRX
Investors should also keep an eye on the movements of Bitcoin (BTC) and evaluate its influence on the overall market sentiment before making a purchase decision. The correlation between the movements of Bitcoin and altcoins like TRX can have significant effects on price developments.
Our Assessment
Tron is currently showing a strong side, but investors should be cautious. The technical analysis suggests a possible continuation of the uptrend as long as certain support marks can be held. However, the low trading volumes and the bearish divergence in the volume oscillator suggest some caution. In addition, the overall market conditions and the movements of Bitcoin play a crucial role in the future development of TRX. Investors should keep these factors in mind and base their decisions on a thorough analysis.
Sources: Coinglass, Hyblockcapital
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