Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- TRX continued its recovery by regaining the $0.0711 support level.
- Greater capital inflows could spark a significant bullish charge.
Earlier in June, Tron’s [TRX] bullish momentum took it to a yearly high of $0.0857. A price rejection at that level along with the correction the crypto market went through in June forced it to hit a local low of $0.0627.
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However, Tron’s break above the last lower high indicated bullish intent to reverse recent losses. Coupled with Bitcoin’s bullish outlook, buyers could be poised for more profit.
Tron’s bullish momentum is picking up again
Source: TRX/USDT on trade view (daily time frame)
Tron’s debut on the Ethereum blockchain on June 2 sparked massive activity on the price chart in anticipation of the altcoin’s potential gains. This led to a 15% price jump between June 2 and June 3.
Still, the $0.0857 price zone, untested for over a year, quickly ended the price pump. TRX fell 25% within a week to take it to the $0.0672 support level. Despite this setback, the bulls seem to be on the rise again.
Building on the pullback from the $0.0672 support level, TRX moved higher to convert the $0.0711 resistance into support. At the time of writing, TRX was trading at $0.0753 with another level of resistance firmly in our 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 positive reading of the Chaikin Money Flow (CMF) of +0.20 highlighted significant capital inflows to Tron.
Buyers can look to long TRX after a successful bullish session closing on the daily time frame. This would reinforce the bullish intent and the price could easily reach the $0.0787 zone. A drop below recent lows would flip the upside back to bears and invalidate this notion.
Read TRONs [TRX] Price Forecast 2023-24
Close call on the futures market
Source: Coinglass
The long/short ratio on the 24-hour time frame showed that longs had a small advantage. Dates from Mint glass revealed that $46.9 million in open positions favored continued bullish action for Tron. This represented a small 50.7% advantage for buyers. Cautious traders can wait for an increase in long positions before buying TRX.