TRX has managed to deliver a healthy bullish uptick for the past seven days as the market struggles to overcome the prevailing uncertainty. However, it is currently approaching significant support area, which is likely to result in a bearish retracement.

TRX has maintained strong activity for the past few days and registered a healthy gain. At the time of writing, the cryptocurrency was still trading in a triangle pattern and has been bullish for the past two weeks.

This is after retesting the bullish support line on May 11 when it dropped to $0.061. It traded at $0.082 on May 24, after a 32% rally that was tested again.

Source: TradingView

TRX’s rally was notably supported by strong accumulation that registered as a strong rise in the MFI. The rally also marked the recovery of the RSI above neutral zone.

Can TRX Break Its Current Resistance Zone?

The ongoing TRX rally has some ground to cover before it interacts with the descending resistance line. Looks like that could happen above the $0.085 price level.

The normal expectation would be for a reversal to take place as it has already registered a significant uptrend so far. However, there are factors that can contribute to more upside potential.

TRX’s 50-day moving average is currently approaching the 200-day MA. A cross from below would be a golden cross, which is often considered bullish.

The DMI indicator is currently showing that the +DI has crossed above the -DI indicating that the trend strength has officially shifted in favor of the bulls. Finally, if general market sentiment changes in the direction of more upside in the coming days, it could further increase the likelihood of a resistance breakout.

On-chain stats about TRX

Whale supply bottomed out on May 21 and has been on the rise ever since. However, it appears that there have been some sales in the past 24 hours as of writing, most likely from whales anticipating a possible reversal near the resistance line.

The funding rate of Binance derivatives fell slightly in response to the outflow of whale addresses.

Source: Santiment

On-chain stats point to a possible reversal, a reasonable expectation after the last rally. However, keep in mind that this is all still hypothetical and the market is still subject to rapid changes.



This post Analyze or Tron’s [TRX] current bullish bias is Janus-faced

was published first on https://ambcrypto.com/why-tron-trx-traders-should-expect-darkness-upside-despite-bulls-espionage/

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