After a continuous price drop of over 12% in recent days, Tron (TRX) is now poised for an upside rally, as its price action and on-chain metrics hint at bullishness. Following its breakout of a strong resistance level of $0.145 has soared more than 16% and never retested.
Tron Successful Breakout Retest
With the recent market decline, it has successfully retested its breakout area and is now experiencing an upside move with a strong daily candle.
At press time, TRX is trading near the $0.151 level and has experienced a price surge of over 3% in the last 24 hours. Meanwhile, its trading volume has dropped by 17% during the same period. This decline in trading volume may be due to the highly volatile market and bearish sentiment.
Tron Price Prediction
According to expert technical analysis, unlike major cryptocurrencies, TRX appears bullish and is trading above the 200 Exponential Moving Average (EMA) in a four-time frame, indicating an uptrend. Additionally, the formation of a doji candle at the support level and the 200 EMA further hints at bullishness.
TRX has successfully broken out of a descending trendline and is currently facing a small resistance level near $0.152. Based on historical price momentum, if TRX closes a candle above this resistance level, there is a high possibility that it could soar by 10% to the $0.167 level.
Bullish On-Chain Metrics
CoinGlass’s TRX Long/Short ratio signals a bullish sentiment. According to the data, the ratio currently stands at 1.0509, indicating bullish sentiment (a value above 1 signifies this). Meanwhile, 51.24% of traders own long positions, while 48.7% hold short positions.
On the other hand, TRX’s open interest has increased by 8% in the last 24 hours, signaling the buildup of more long positions during this period. Combining the bullish long/short ratio with rising open interest suggests a strong buying opportunity. Traders often combine these data while building long/short positions.
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