• TRON (TRX) recently slipped beneath the belt of support at $0.053, invalidating a bullish idea, but quickly recovered to reclaim the region of support.
• The price is now on the verge of pushing above the resistance at $0.05538, but sellers remain strong in the $0.054-$0.0577 region.
• The RSI has recovered and the CMF shows some capital flow out of the market, so traders can look for a retest of $0.0528-$0.0537 to assess the probability of further upside.
TRON (TRX) recently experienced a sharp drop to $0.05, invalidating a bullish idea laid out recently. The altcoin’s lukewarm Open Interest posed some questions to buyers, but the market posted gains over the weekend as the market cap of altcoins (crypto assets excluding Bitcoin and Ethereum) rose 5% from $301.5 billion to $316 billion.
The area of support at $0.052, highlighted by the cyan box, was broken in the past few days. In doing so, the price also broke beneath the previous low at $0.0533, flipping the structure bearish. However, TRX quickly recovered to climb back above the $0.053 level, and is now on the verge of pushing above the resistance at $0.05538.
The large upper candlewicks on the most recent trading session, as well as the one on 14 December, suggested that sellers were strong in the $0.054-$0.0577 region. This could mean that the price may continue to trade within the past month’s important levels and short-term control could be taken by sellers.
The technical indicators also showed some mixed signals. The RSI, which had plummeted to 25 on the recent price slump, has recovered and sat at 57 to show some bullish momentum. However, the CMF stood at -0.04, after having fallen to -0.11 to show significant capital flow out of the market a couple of days ago.
In conclusion, until $0.0577 was broken and retested as support, sellers can look to take profits in the $0.056-$0.057 area. Meanwhile, bulls can look for a retest of $0.0528-$0.0537 to assess the probability of further upside.