After a sustained price decline of over 12% in the past few days, Tron (TRX) is now poised for an upward rally as price action and on-chain metrics point to bullishness. After breaking out from a strong resistance level of $0.145, it has surged over 16% and never retested.
Tron Successful Breakout Retest
Due to the recent market decline, it has successfully tested its breakout area again and is now experiencing an upward movement with a strong daily candle.
At the time of going to press, TRX is trading around the $0.151 level and has seen a price increase of more than 3% in the past 24 hours. Meanwhile, the trading volume has dropped by 17% in the same period. This drop 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. Moreover, the formation of a doji candle at the support level and the 200 EMA further indicates bullishness.
TRX has successfully broken out from a descending trendline and is currently facing a minor resistance level near $0.152. Based on historical price momentum, if TRX closes a candle above this resistance level, there is a high chance that it could rise by 10% towards the $0.167 level.
Bullish On-Chain Metrics
CoinGlass’ TRX Long/Short ratio signals bullish sentiment. According to the data, the ratio currently stands at 1.0509, indicating bullish sentiment (a value above 1 indicates this). Meanwhile, 51.24% of traders are holding long positions, while 48.7% are holding short positions.
On the other hand, TRX’s open interest has increased by 8% in the past 24 hours, indicating the build-up of more long positions during this period. The combination of the bullish long/short ratio with rising open interest suggests a strong buying opportunity. Traders often combine these data points when building long/short positions.
