- As poor sentiments ravaged the market, TRX’s price embarked on a descent.
- Indicators on a daily chart hinted at a further drop in TRX’s value
Following several weeks of price growth, Tron [TRX] suffered a retracement at the $0.0850 – $0.0940 price levels on 29 July. Since then, the alt’s price has trended downward.
Read Tron’s [TRX] Price Prediction 2023-24
At press time, the 10th cryptocurrency asset by market capitalization exchanged hands at $0.0763. In the last week, TRX’s price has dropped by 9%. An assessment of key indicators on a daily chart revealed that further downside lurks in the coin’s future.
TRX and its woes of increased sell-offs
The price retracement on 29 July coincided with when the bears forced the bulls out of the TRX market, as was gleaned from its Moving Average Convergence Divergence. This indicator tracks market trends and identifies periods of potential reversal.
As is the case with TRX, when the MACD line crosses below the signal line, it is considered a bearish signal. It ushers in a new bear cycle and suggests that the price of an asset is likely to continue downwards.
A look at the coin’s Awesome Oscillator also lent some credence to the above position. Since the price decline began, the indicator has posted red histogram bars below the center line. This is often considered to be a bearish signal, as it means that the short-term momentum is weaker than the long-term momentum. Hence, TRX’s price is likely to decline further.
As expected, TRX accumulation has also dwindled. At the time of writing, the Relative Strength Index (RSI) rested below its center line at 41.18. The Money Flow Index (MFI) inched closer to oversold territory at 30.10.
Likewise, since the price decline, the alt’s Chaikin Money Flow began its descent to be positioned below the zero-center line at press time. This indicator measures the buying and selling pressure on an asset over a period of time.
A value below the zero line is a sign of weakness in the market, as it indicates increased liquidity exit.
Source: TRX/USD, TradingView
How much are 1,10,100 TRXs worth today?
Market sentiment remains poor
At -0.215, TRX’s weighted sentiment lingered in negative territory. The poor market sentiment has caused many traders to close their trade positions in the last week. Per data from Coinglass, TRX’s Open Interest has fallen by 14% in the past seven days.
Source: Coinglass
Funding rates have also been increasingly negative, suggesting that many traders are shorting the altcoin.