Key Takeaways
- Data shows over 4.25 billion TRX bought around $0.25, indicating strong support and reduced downside risk.
- With fewer tokens held at a loss between $0.27 and $0.31, TRX faces minimal resistance to higher levels.
- TRX has been range-bound between $0.21 and $0.27, showing market indecision but resilience above $0.25.
Tron (TRX) is one of the few top 10 altcoins that have registered a positive return on a year-to-date (YTD) basis. Yet, the cryptocurrency’s price is still down 38% from its all-time high.
Despite that, TRX’s price has failed to undergo any notable correction within the past month. Instead, it has been consolidating for the past few weeks while trading above $0.25.
Will the cryptocurrency eventually move closer to its all-time high or not? Let’s find out.
TRX Resists Correction
CCN’s findings show that Tron’s price has resisted a notable decline due to the support between $0.23 and $0.26. According to IntoTheBlock data, the In/Out of Money Around Price (IOMAP) shows that the volume of unrealized profits accumulated at these prices far outweighs that of unrealized losses.
For instance, we observed that 3.67 million addresses purchased 4.25 billion coins between $0.24 and $0.25, which is in the money.
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Typically, the higher the volume “in the money,” the more substantial the support. However, when the cluster of coins “out of the money” is larger, it indicates resistance.
As seen below, the combined volume of coins from the money bought between $0.27 and $0.31 was not up to 4.25 billion. Therefore, due to the weak sell wall, TRX’s price will likely break past these zones in the near term.
However, technical indicators reveal that the potential run above $0.31 might not happen quickly. For example, on the daily chart, TRX price has been swinging between $0.21 and $0.27, indicating that bulls and bears have almost equal dominance on the altcoin.
Also, the Awesome Oscillator (AO) reading is positive. The AO compares recent price action with historic performance to measure momentum.
Typically, when the AO is positive, momentum is bullish. However, a negative reading indicates bearish momentum.
However, as of this writing, the AO has flashed red histogram bars, indicating that bullish momentum is fading. If sustained, the Tron’s price might continue trading sideways.
TRX Price Analysis: Breakout or Breakdown?
The 4-hour setup shows that TRX’s price trades within a symmetrical triangle with no clear direction yet. However, signs from the Moving Average Convergence Divergence (MACD) seem to align with that shown by the IOMAP.
The MACD reading is positive, and the 12 EMA (blue) has crossed over the 26 EMA (orange). Should this trend remain the same, the TRX price will likely break out of the upper trendline of the symmetrical triangle.
If successful, Tron’s next target could be a run above $0.30. On the other hand, a breakdown below the pattern’s lower trendline might invalidate this bias.
The cryptocurrency’s market value might slide below $0.24 in that scenario.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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