- Tron (TRX) faces challenges in recovering as fear, uncertainty, and doubt (FUD) prevail in the crypto market. It experienced a rebound after losing hold of its recent high but remains susceptible to short-term downward pressure.
- Bitcoin (BTC) breached a support level but attempts to reclaim it, impacting the altcoin market, including TRX. TRX’s performance in Q1 has been overshadowed by market sentiment.
- Technical indicators like RSI and OBV show bullish momentum, but TRX encounters a key resistance level. A potential price reversal could lead to a correction, with key support levels and consolidation ranges coming into play. Monitoring BTC’s price action is crucial for trade setups.
Tron (TRX) struggles to recover amidst the prevailing fear, uncertainty, and doubt (FUD) in the crypto market. While TRX lost its grip on the recent high of $0.071, it found support at $0.06700 and experienced a rebound. Bitcoin (BTC), on the other hand, breached the $26.8k support level but attempted to reclaim it at the time of writing. The current press time level of BTC suggests potential short-term downward pressure on the altcoin market, including TRX, unless BTC reclaims $27k and undergoes a surge.
Despite TRX’s impressive performance in the first quarter, the prevailing market sentiment has overshadowed its achievements. The Relative Strength Index (RSI) indicates a bullish momentum with a value of 55, indicating an increase in buying pressure in recent hours. Similarly, the On-Balance-Volume (OBV) has surged, confirming heightened demand during the same period.
However, TRX faces a key resistance level at $0.06980 at the time of writing. Previous price rejections have occurred when TRX reached this level, suggesting a potential reversal if the trend repeats. In such a case, TRX could correct down to $0.06700, a significant support level observed in the first half of May. Near-term bearish traders should also monitor the trendline support, slightly above $0.06700, as well as the previous consolidation range of $0.06422 to $0.06700 (highlighted in green). These levels could potentially impede the downtrend.
Conversely, if TRX manages to close above $0.06980, bullish sentiment may strengthen. This could potentially fuel a retest of $0.07134 or even a surge beyond the recent high. Coinglass data reveals that TRX’s open interest (OI) rate was $69.73 million on April 1st, with a slight increment to $71.23 million at the time of writing, indicating a mild bullish momentum in the first half of May.
However, the funding rates for TRX have fluctuated during this period, indicating varying demand for TRX tokens. This volatility could undermine a strong uptrend and give sellers some leverage. On the liquidation front, approximately $28k worth of short positions were liquidated in the past 24 hours, as reported by Coinalyze. In contrast, long positions saw less than $5k worth of liquidations during the same period, suggesting that bulls may be reluctant to exit their current positions.
Considering these conflicting metrics, closely monitoring BTC’s price action becomes crucial for better trade setups and to gauge the potential direction of TRX and the overall market sentiment.