Tron case analysis [TRX] The current bullish bias is Janus-faced.


TRX has been a healthy bullish over the past seven days as the market struggles to overcome the prevailing uncertainty. However, it is currently approaching a significant support area and a bearish retracement is likely.

TRX has maintained strong activity over the past few days with a healthy uptrend. At the time of reporting, the cryptocurrency was still trading within a triangle pattern and has been bullish over the past two weeks.

This comes after retesting the upside support level, which reached the $0.061 level on May 11th. It traded at $0.082 on May 24th, after a rally of 32% that retested the support level.

Source: TradingView

Notably, the rally in TRX was supported by a strong build-up that registered a strong rise in MFI. The rally also indicated that the RSI has recovered beyond its neutral zone.

Can TRX break through the current resistance zone?

The ongoing TRX rally still has grounds to cover before interacting with the falling resistance level. It could seemingly occur above the $0.085 price level.

Given the significant upside so far, it is normal to expect a reversal. However, there are factors that could contribute to a further rise.

The 50-day moving average of TRX is currently approaching the 200-day MA. Crossing below will be a golden cross, often considered bullish.

The DMI indicator now indicates that +DI has crossed the -DI and trend strength has officially shifted in favor of the bull market. Finally, a break above the resistance level could be further strengthened if overall market sentiment shifts in favor of more upside over the next few days.

On-chain metrics for TRX

Whale Metric’s holdings bottomed out on May 21st and have seen some uptick since then. However, as of this writing, it appears that there has been some sell-off in the last 24 hours by the whales expecting a potential reversal near the resistance level.

Binance derivatives funding rates have fallen slightly in response to the whale address leak.

TRON TRX 20.34.29 24 May 2022 e1653413974318

Source: Santiment

The on-chain metric points to a potential reversal that is a reasonable expectation after the recent rally. However, all of this is still hypothetical and the market is still sensitive to rapid changes.

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