Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
In the past two days, the Bitcoin Dominance metric has risen from 42.9% to 43.43%. This is a sign that Bitcoin has outperformed (or posted slightly lower losses) than the rest of the market.
TRON has also fluctuated on the charts at the whim of Bitcoin lately. However, it has encountered resistance in the $0.06-$0.065 area and TRON is now trading in this area again.
TRX-1 Hour Chart
Over the past ten days, TRX has formed a range between $0.0575 and $0.0626. There were significant deviations below USD 0.0575, but these could be due to liquidity hunts. The midpoint of this range (white, dotted) has served as temporary support and resistance for the past two weeks.
The structure of the range therefore retained some water in the short term. In addition to the $0.06 mid-range, there was a longer-term horizontal resistance level of $0.0605. This area (red box) has rejected TRX several times lately. A clean break past this region has led TRX to reach the highs of the range.
Therefore, again these are the two scenarios available for TRX. Rejection and a move to $0.058, or a few hours of sideways trading within this region, followed by an appreciation to reach $0.0627. In either scenario, the risk-to-reward would not be feasible for traders with a bullish or bearish bias.
The indicators were soft, suggesting that there was no strong short-term trend behind TRON’s recent price move. The Awesome Oscillator has been climbing above the zero line for the past few hours, but has been weaving above and below the zero line lately.
The CVD was also a similar story — yes, it flashed some buying pressure in the immediate hours leading up to press time, but nothing significant. The Directional Movement Index highlighted the lack of a strong trend, with the ADX just below 20.
A revisit of the lows of $0.056-$0.058 could present a short-term buying opportunity, while a test of the $0.0627 resistance could represent a selling opportunity. Risk-loving traders may aggressively position themselves in the $0.06-$0.0605 zone, while risk-averse traders may wait for a more certain opportunity.
This post TRON: Everything you need to know about this high-risk area for traders
was published first on https://ambcrypto.com/tron-all-you-need-to-know-about-this-high-risk-area-for-traders/