Tron retests 2022 highs despite overall market slump
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TRX’s was an outlier and bullish amidst the overall market slump. The breakout level could offer bulls a re-entry chance, but only if BTC crosses these levels.
Tron graced its 2022 highs of $0.093.
Open Interest rates increased; funding rates dropped.
Tron [TRX] was an outlier into the weekend (22/23 July). It pumped over 15%, rising from $0.0803 to $0.0944, during the early Asian session on 22 July. But the massive pump eased to the previous resistance and breakout level at the time of writing.
Contrary to TRX’s massive price pump, BTC struggled to cross $30k as of press time. BTC bears seemed close enough to flipping the $30k to a resistance.
Nevertheless, the Tron ecosystem recorded an impressive adoption rate than Ethereum [ETH], with over 5 million daily transactions.
Will the breakout level rescue bulls?
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Source: TRX/USDT on TradingView
The H12 bearish order block (OB) of $0.0826 – $0.0858 (red) was a brief roadblock in mid-July. When zoomed out to capture 20222 price action, the above bearish OB aligned with May 2022 price ceiling.
But the recent price pump crossed the bearish OB and mounted above 2022 highs of $0.093. However, with muted BTC price action, the move above the bearish OB could be a liquidity hunt, as illustrated by the long candlestick wick.
Ergo, the confluence area of the bearish OB and the 61.8% Fib level ($0.0829) could offer bulls a formidable ground to bounce from. But the area could only hold if BTC doesn’t record more losses.
But if BTC drops below $29.5k, TRX could ease further to the ascending trendline support or 50% Fib level of $0.0794.
The RSI hovered above neutral levels since mid-June, indicating strong buying pressure in the same period. Similarly, the OBV improved, reinforcing demand for TRX since mid-June.
Open Interest increased; funding rates declined
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Source: Coinglass
According to Coinglass, the weekend price pump was marked by an uptick in the Open Interest (OI) rate from about $65 million on 21 July to >$100 million at the time of writing. That’s a bullish cue and leverage to bulls.
However, funding rates declined massively in the same period. It could tap sellers into the market and reinforce the previous thesis of a liquidity hunt above the bearish OB.
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Source: Coinglass
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
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