Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- Intense selling pressure caused bulls to lose key levels of support
- Falling OI and Spot CVD pointed to more shorting opportunities
The Trendline Breakout and Tron’s Confluence Support [TRX] bears could signal a shift in momentum for TRX. The altcoin was down 12% in the past 24 hours as the price broke through the $0.0711 price zone under intense selling pressure.
Read TRONs [TRX] Price Forecast 2023-24
Tron’s price movement was in stark contrast to Bitcoin’s [BTC] which posted a 1% gain over the same period. Especially since the king coin appeared to recoup $26,000.
Bullish momentum contained at $0.0857 resistance
Source: TRX/USDT on trade view
Tron’s strong bullish momentum since April 26 caused it to break through year-long resistance levels to $0.0711 and $0.0787. However, the $0.0857 resistance level proved to be a step too high for bulls. The resistance-level price rejection ushered in a wave of selling pressure.
Bears immediately retook the $0.0787 resistance level on June 5. A retest of the recovered resistance level added more downside to Tron with two major bearish candles on the 12-hour time frame breaking the bullish support confluence in the $0.0711 price zone. However, bulls could find support at the $0.0672 support level with a price of $0.0697, as of writing.
Based on Tron’s recent price action, sellers might try to extend their gains with a retest of the $0.0711 level. More dips for TRX will make the market structure bearish in the long run, with bears targeting $0.0672 and $0.0627 as support levels.
On the other hand, bulls may bounce back from the support level and push to quickly regain the $0.0711 and $0.0787 levels. This would allow the price to consolidate in a range before another significant price move.
Falling open interest showed discouraged bulls
Source: Coinalyse
A look at the Open Interest (OI) data of Coin analysis revealed buyers could be exhausted. The OI maintained a steady decline from June 3 as the price fell aggressively.
How much are 1, 10 or 100 TRX worth today?
A drop in price and open interest indicated discouraged traders with long positions. This is a sign that a continuation of the bearish trend is imminent. The Spot CVD also reflected market sentiment with a significant decline over the same period. This highlighted the declining demand behind TRX.