Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- TRX has strong bullish structure and momentum
- The bulls could try to take profits and wait for the next move instead of FOMOing
TRON [TRX] witnessed strong bullish structure and sentiment in the short term. It also saw significant on-chain growth and a big increase in total value locked (TVL) in recent weeks. TRON also formed high-profile partnerships, discussed in more depth here.
Read TRON’s [TRX] Price forecast 2023-24
A recent AMBCrypto analysis from October 17 indicated that a retracement to the $0.0869 zone was a strong possibility. But only a dip of $0.0874 occurred before the bulls took control of the market.
The looming bearish divergence could have an impact
Source: TRX/USDT on TradingView
The Relative Strength Index (RSI) formed a series of lower highs while the price moved higher, forming a bearish divergence on the 4-hour chart. However, this difference does not mean that a reversal would occur immediately. Instead, it suggested the market could become overloaded.
On-Balance Volume (OBV) has moved higher over the past week, reflecting the strong buying volume in the market. The move from the $0.0883 level from resistance to support over the past week was an encouraging sign for the bulls.
The Fibonacci levels (blue) indicated that the local high at $0.091 and the 23.6% extension level at $0.093 were bullish targets to watch out for.
Data from other platforms supports the idea of a solidly bullish TRX
Source: Hyblok
The Cumulative Liq Levels Delta was $14.17 million. The high positive value ensured that the bulls would lose much more than the bears in the scenario of adverse market conditions. Furthermore, it was a sign that we could see a reversal in key liquidation levels as the market corrects and looks for more liquidity.
In the North, there were almost $1.5 million in short liquidations at the $0.0902 level and $1 million at $0.091. These levels were close to that of the Fibonacci levels, giving traders more convergence for their take-profit levels.
Source: Coinalyse
Coinalyze’s data showed a rising Open Interest graph. This was accompanied by a steady upward trend in the Cumulative Volume Delta (CVD). This was yet another sign that short-term market sentiment was bullish and the rally was supported by real demand.
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Since the market could already be overloaded (in the short term), traders who are not in a position may wait for a pullback to reassess. Meanwhile, bulls lower on the chart can use these levels to their advantage.
