TRON Crypto Market Analysis

• TRON crypto’s momentum and buying pressure were not strong enough to enforce a price breakout.
• The overlap of liquidation levels and the resistance meant there could be a bearish reversal for TRX.

TRON (TRX) was trading at $0.232 at press time, experiencing a double-digit price gain after a weekend drop. Despite this swift bounce, TRON crypto remained below the local resistance at $0.25.

Bitcoin (BTC) hovered around the $83k mark, showing little short-term bullish intent, which could be affecting TRON’s market outlook. Technical analysis suggested that traders might want to sell TRX if it retested the overhead resistance.

TRON Crypto Range Formation to Check Bulls’ Progress Again

TRON has been trading within a range of $0.2745 to $0.22, with $0.248 acting as the mid-range level. This mid-range level has consistently served as strong resistance over the past six weeks, with prices repeatedly failing to break through and subsequently dropping to the range low.

On March 16th, TRX dipped below the range low but bulls initiated a recovery, pushing the price up by over 10% in three days. However, the On-Balance Volume (OBV) has not surpassed a local high, indicating a lack of significant bullish dominance.

At the time of writing, the Relative Strength Index (RSI) was at 50, suggesting a potential momentum shift. However, similar shifts have occurred in the past two months without leading to a breakout beyond the mid-range level.

The 1-month liquidation heatmap outlined the $0.25 region as a magnetic zone. The recent price bounce meant that a move higher to the mid-range and the liquidation levels were aligned well.

The cluster of liquidity just above the mid-range level could attract TRON higher before a bearish reversal. Hence, traders can expect TRON to brush the $0.25 level before a bearish reversal. Traders can use this retest to sell or go short, but it may be too late to buy TRON anticipating more gains.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.