Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- TRON has a short-term bearish structure.
- The price has been stuck within a resistance zone over the past week, and a move downward was more likely.
TRON [TRX] was one of the large-cap altcoins that saw a quick recovery after the losses of 17 August. TRX saw an 8.4% bounce by 24 August, and since then has traded within a region of resistance.
Read TRON’s [TRON] Price Prediction 2023-24
This presented a trading opportunity, although the likelihood of the trade could be heavily impacted by Bitcoin’s [BTC] price movement. The pump last week for BTC from the positive Grayscale news was wholly retraced, which suggested market sentiment was bearish.
The daily bearish breaker block presented an area of interest
On the 4-hour chart, the market structure of TRX was bearish after the move below $0.0761 on 30 August. The red box from $0.076-$0.092 represented a bearish order from the weekly chart, while the region below $0.08 was a bullish higher timeframe zone.
The green boxes represent areas of interest on the daily chart, with $0.076 being resistance and $0.07 being a support zone. These were the levels that traders can watch out for in the coming days. With the bearish market structure, it was likely that TRX would initiate a drop in prices soon.
The RSI was at neutral 50, showing a lack of momentum in the past few days. The OBV has been trending downward since 24 August, while the price was stuck at the $0.076 region. This showed that traders can anticipate losses for TRX on the charts.
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The spot CVD saw a bounce but sentiment was not bullish yet
After 1 September the spot CVD climbed higher. The funding rate was positive in the past two days but not strongly so. Meanwhile, the Open Interest stayed relatively flat, showing a lack of conviction from speculators.
The data from Coinalyze suggested that, despite the short-term buying pressure the sentiment was not in favor of the bulls. The price action signaled a drop was likely, and short-sellers can target the local lows at $0.0718.