Why Tron is failing to impress investors in a bull market
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TRX could face another price rejection at the bearish OB on H12. Bulls can consider seeking re-entry at this level…
TRX’s H12 market structure bias was bullish.
Open Interest rates steadied near $63 million.
Bitcoin’s [BTC] recent upswings have set most altcoins to reverse losses made in the first half of June. In particular, Tron [TRX] edged closer to reclaiming the June high of $0.08580. However, the altcoin must deal with a roadblock, a bearish order block, below the June high to advance further.
A recent report established that Tron outperformed Ethereum [ETH] in total value locked. But TRX’s price action remained within the whims of market sentiment, especially the BTC price movement.
Will bulls falter again?
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Source: TRX/USDT on TradingView
At the time of writing, TRX’s price action rebounded near the $0.07858 level after rejection at the bearish order block of $0.0826 – $0.0858 (red) on the H12 chart. Bulls still aimed at the bearish OB and could falter again if the roadblock proves sticky to crack.
A likely drop could ease the confluence area of $0.0786 and the ascending trendline support. Notably, the ascending trendline has been at a crucial support level since mid-June. A drop and likely rebound at the confluence area could offer bulls re-entry for long positions targeting the bearish OB.
A breach of the ascending trendline support will invalidate the bullish thesis. Such a breach could make a retest of $0.7500 feasible.
Meanwhile, the Average Directional Index was above 20, and the Chaikin Money Flow was above the zero mark, indicating a strong uptrend and capital inflows for TRX.
But the RSI retreated from the overbought zone but eased near the 60 marks, reinforcing that buying pressure was still present.
Open Interest rates wavered
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Source: Coinalyze
TRX’s recent retest of the bearish OB was marked by a positive CVD (Cumulative Volume Delta) – rising slope, which underscored bulls’ leverage.
But the Open Interest (OI) rates fluctuated below $63 million in the past few hours. Notably, the 13 July price jump was followed by a sharp rise in OI from about $57 million to $63 million. But OI wavered below $63 million after that – a stagnated demand in the futures market.
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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