Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- TRX continued its recovery by regaining the $0.0711 support level.
- Increased capital inflows could fuel a significant bullish charge.
Earlier in June, Tron’s [TRX] bullish momentum drove it to a year-high of $0.0857. A price rejection at that level along with the correction the crypto market experienced in June forced it to a local low of $0.0627.
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However, Tron’s break above the latest lower high signaled bullish intent to reverse recent losses. Coupled with Bitcoin’s bullish outlook, buyers could be primed for more gains.
Tron’s bullish momentum picks up again
Source: TRX/USDT on Trading View (Daily Timeframe)
Tron’s debut on the Ethereum blockchain on 2 June sparked huge activity on its price chart in anticipation of the potential gains by the altcoin. This led to a 15% price jump between 2 June and 3 June.
Yet, the $0.0857 price zone which had not been tested in over a year swiftly ended the price pump. TRX dropped by 25% within a week to take it to the $0.0672 support level. Despite this setback, bulls seem to be on the march again.
Building on the pullback from the $0.0672 support level, TRX edged higher to flip the $0.0711 resistance to support. As of press time, TRX was trading at $0.0753 with another resistance level firmly in its sights.
Long-term buyers can be encouraged by the Relative Strength Indicator (RSI) climbing above the neutral 50. At the time of writing, it stood at 58 showing that the bullish rally was strengthening. The Chaikin Money Flow’s (CMF) positive reading of +0.20 highlighted the significant capital inflows to Tron.
Buyers can look to long TRX after a successful bullish session close on the daily timeframe. This would solidify the bullish intent and price could easily reach the $0.0787 zone. A drop below the recent lows would turn the advantage back to bears and invalidate this idea.
Read TRON’s [TRX] Price Prediction 2023-24
Close call in the futures market
Source: Coinglass
The long/short ratio on the 24-hour timeframe showed that longs had a slight advantage. Data from Coinglass revealed that $46.9 million worth of open positions were in favor of continued bullish action for Tron. This represented a slim 50.7% advantage for buyers. Cautious traders can wait for an increase in long positions before looking to buy TRX.