Over the past few weeks, the price of Tron (TRX) has experienced an upward movement. However, it has struggled to break through a crucial resistance level for a significant period of time.
In the last 24 hours, TRX saw a 1% increase, while on the weekly chart, it recorded a 3% gain. The bullish momentum has been maintained since surpassing the $0.68 price level. The technical outlook suggests a potential shift towards bullish influence.
Demand and accumulation indicators have shown improvement in the daily timeframe. While Tron has managed to resist the broader market sentiments affecting other altcoins, it remains vulnerable to fluctuations in the Bitcoin price.
To sustain its daily gains, it is crucial for TRX to surpass the immediate resistance level. Failure to do so may result in a reversal of its upward trend. The increase in the TRX market capitalization indicates that demand has started to revisit the market.
Tron Price Analysis: One-Day Chart
At the time of writing, Tron (TRX) was trading at $0.078. The altcoin faced overhead resistance at $0.079, and a successful move above this level would likely propel TRX above the $0.080 mark. However, if it is rejected at $0.079, the coin could experience a significant decline.
It is worth noting that TRX has previously faced rejection at the $0.083 level, which will serve as an important resistance. On the downside, the nearest support for Tron is located at $0.074.
If TRX fails to hold above this support level, it may drop further to $0.068. The trading volume of TRX in the last session was green, suggesting that buyers have started to establish control over the price.
Technical Analysis
Following a period of decreased investor interest earlier this month, Tron (TRX) is currently showing signs of recovery in terms of demand on the daily chart. The Relative Strength Index (RSI) indicates that buyers are exerting dominance in the market, as it is above the half-line. This suggests a positive sentiment and increased buying pressure.
Additionally, the price of TRX has moved above the 20-Simple Moving Average (SMA) line, indicating that buyers are in control of the price momentum in the market.
This further supports the notion that buyer dominance is prevailing. To sustain this buyer momentum, it is crucial for TRX to break past the $0.079 resistance level. If TRX successfully surpasses this level, it may continue its upward movement
Contrary to rising demand, TRX has maintained sell signals on the daily chart based on the Moving Average Convergence Divergence (MACD) indicator.
The MACD histogram formed red bars, indicating sell signals for the altcoin. This suggests a potential decline in price if TRX fails to move above the immediate resistance level.
Furthermore, the Chaikin Money Flow (CMF), which measures capital inflows and outflows, is below the half-line. The upcoming trading sessions will be crucial for TRX to determine its future direction.
Featured Image From UnSplash, Charts From TradingView.com