TRON [TRX] climbs past $0.07, should bulls expect another upward move?

Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.

• The 4-hour and daily time frames indicated different biases for TRON.
• Cautious traders can wait for the May 8 price action to develop before making their move.

TRON performed well in May and the bulls managed to force prices past a resistance zone as of April 10 that worked against them. TRX gained 6.5% in May and it was possible that more gains could follow.

How much are 1, 10 or 100 TRX worth today?

There were two things that TRON bulls had to watch out for. The first was bearish Bitcoin [BTC] on the lower terms. BTC’s rejection at $29.8k meant there was a chance the king could take even more losses this weekend. The second was the presence of a bearish order block from $0.07-$0.073.

Buyers break through the mid-April slump to push TRX back up

Source: TRX/USDT on TradingView

A look at the 4-hour charts showed that price action was strongly bullish behind TRON. The price recovered well from the mid-April setbacks when the bulls struggled to break the $0.067 resistance.

They achieved that on May 1. Moreover, it happened on strong buy volume as the OBV saw an upward move past a trendline resistance. Still, the daily time frame showed that things were not smooth and optimistic for TRX.

Despite moving above the lower $0.067 time frame resistance, the $0.00705 area was a bearish order block on the daily time frame. Therefore, a move to $0.072-$0.073 to boost liquidity before a reversal was a possibility. Therefore, both bulls and bears need to be careful.

The available evidence showed bullish momentum and buying pressure for TRX, but it was unclear whether a breakout past the $0.073 bearish order block could occur. Buyers may wait for a daily session to close above this level, while bears may see a rejection too short. The highs and lows of May 8 may shed more light on the situation for the week ahead.

Short liquidations contributed to the upward movement

Source: Mint glass

Coinglass data showed that short positions consistently liquidated larger volumes than long positions. This was due to rising TRX prices and the move above $0.067 on May 2 and above $0.07 on May 5.

Source: Coin analysis

Realistic or not, here is TRX’s market cap in terms of BTC

The Open Interest has not seen a strong trend in May, despite the price move past strong resistance. This raised doubts as to whether bullish sentiment was not completely predominant. The speculators also had their tug-of-war and neither camp has won yet.

A spike in OI alongside a move above $0.073 would indicate the bulls had won the battle. The next level of significant resistance for TRON was at $0.0765.