Does Tron offer a new buying opportunity?

Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.

• TRX’s H4 trend has been bullish for the past three weeks.
• The volume indicator showed that the bulls are concerned.

Tron [TRX] was trading at a level on the charts that had served as resistance on May 23. Although prices surged toward $0.086 in early June, the bulls couldn’t sustain that fervor. Can they get a similar or better result this time?

Read Tron’s [TRX] Price Forecast 2023-24

The retest of the $0.078 support zone presents a good buying opportunity for TRX bulls, targeting the $0.0818 level and the local high of $0.0858. Although the latter is more ambitious, a Bitcoin [BTC] moving back above $31.5k will bolster buyers’ conviction in the crypto market.

TRX traders are encouraged after the move to $0.08

Source: TRX/USDT on TradingView

The 4-hour chart showed that the market structure was once again bullish after TRX climbed past $0.078 in the past few hours. The jump from $0.0766 to $0.0805 lasted from July 6 to July 9, but most of these gains were erased over the past two days.

It was accompanied by a rapid decline in OBV, which did not support the idea that buyers remained strong. Instead, it showed that the sellers could get the upper hand. In contrast, the RSI, which also saw a dip, rose back above the neutral 50 line at the time of writing.

Trading volume remained as it had been since the end of June. If trading volume increases alongside a sharp price move, it would indicate a breakout. The available evidence, especially TRX’s price action, favored the bullish argument.

Another factor in the futures market can give bulls a break

Source: Coin analysis

The OBV slump, while significant, does not in itself affect the bullish bias. But a look at the 1-hour Open Interest chart showed it was slowly falling even as Tron prices marched north. This suggested that speculators were not bullish but instead covering short positions – a bearish sign.

Is your wallet green? Check out the TRX Profit Calculator

Again there was another indicator that disagreed. The spot CVD saw a positive slope over the past 12 hours as TRX bounced out of the support zone, pointing to the demand behind the asset.

With indicators at odds with each other, the long idea discussed here may depend heavily on how BTC reacts in the coming hours.