TRON [TRX] breaks above the two-month resistance despite BTC’s weakness

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

• TRON’s development activity continued to decline.
• The move above a key resistance zone could trigger a buying wave

TRON [TRX] posted gains of nearly 9% in the past week. Bitcoin [BTC] was up 5% during this period, but saw more volatility than TRX. However, a dip in BTC prices could bring down TRX. If BTC remains stable or gains, TRX will also move up.

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TRX strike continued to fall over the past week and the data of Sanitation unlikely to inspire investor confidence. However, the price action showed bullish signs and bulls in a lower time frame may look for trading opportunities.

The move above the bearish order block may excite buyers

Source: TRX/USDT on TradingView

The TRX market structure was bearish on the daily time frame after moving below $0.066 on March 7. Since then, the price has set a series of lower highs, most recently reaching the $0.067 level (marked in blue).

On April 29, TRON bulls forced a daily trading session above this level, turning the structure bullish. The RSI was above the neutral 50 and stood at 61 to show strong bullish momentum. The break in the market structure indicated that even more profit was possible.

A glance at the 4-hour chart showed a bearish order block in the $0.067-$0.0677 area. This block was broken on April 30 and retested as support on May 1 and 2. This confirmed that the bearish OB had flipped to a bullish breaker, another sign that TRX was poised for an upward move.

The OBV has climbed up over the past week, but this has not been explosive. In 2023, there were times when TRX rose sharply and was accompanied by a spike in OBV. Traders can watch for another such spike.

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Negative funding ratio and weighted sentiment showed bears dominating

Developer activity has dipped for the past ten days, even as TRX recovered from the $0.064 support level. Weighted sentiment was also negative despite recent gains, and the funding ratio showed that short positions were in the majority.

Source: Sanitation

The price action showed that the resistance levels at $0.07 and $0.072 could hold up against the bulls. On the other hand, a daily session below $0.0667 will again flip the structure in favor of the bears.