Disclaimer: The findings of the following analysis are the authors’ sole opinions and should not be considered investment advice.
While the crypto fear and greed index bottomed out, the market still exhibited “extreme fear” sentiment. After a substantial retracement towards the USD 0.04 level, Ton . has [TRX] saw a decent recovery in recent days.
A robust bearish attempt to avoid a close above the 23.6% Fibonacci resistance could cause a short-term drop on the chart. At the time of writing, TRX was trading at $0.06443, up 5.26% in the last 24 hours.
TRX Daily Chart
Source: TradingView, TRX/USDT
Over a relatively longer time frame, TRX saw improvements after falling to its annual low on June 15. Furthermore, this recovery brought in a bearish bullish wedge-style setup after the recent surge in buying pressure.
Meanwhile, the 20 EMA (red) and the 50 EMA (cyan) fell below the 200 EMA (green) to show strong bearish behavior. This deadly cross could impair buyers’ medium-term ability to propel trend-changing rallies.
Also, the 23.6% Fibonacci level may undermine the immediate buying effort to test the USD 0.07 zone. In this case, any reversal of the current pattern would open a door to test the $0.057-$0.06 range.
The investors/traders should carefully assess the macroeconomic sentiments that affect the broader sentiment before placing bets. Any bearish invalidation could yield short-lived gains in the $0.069-$0.07 range.
rode
Source: TradingView, TRX/USDT
The Relative Strength Index has seen solid growth out of oversold territory over the past week. Any reversal of resistance from the 41-44 range could help the sellers propel a pattern breakdown on the chart.
Also, a reversal of the CMF would confirm the existence of a bearish divergence with the price. Finally, any bullish crossovers on the MACD lines could invalidate bearish trends.
Conclusion
TRX saw a death cross on the daily time frame alongside the bearish divergence on the CMF. Also, with the bearish rising wedge-like setup approaching the 23.6% level, TRX could see a pullback towards the $0.057-$-0.06 range.
However, the investors/traders need to consider Bitcoin’s movement and its impact on the broader market perception in order to make a profitable move.
This post Tron: Why TRX Traders Need to Identify These Signs of a Possible Reversal
was published first on https://ambcrypto.com/tron-why-trx-traders-must-identify-these-signs-of-a-possible-reversal/
