Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the author
- TRX has reclaimed the previous support from USD 0.076 – USD 0.078.
- Open interest rates improved and buyers took control.
Tron [TRX] was an outlier last week (August 21-27) and performed excellently Bitcoin [BTC]. While the king coin posted a 0.34% loss, TRX gained 2.64% on weekly performance, according to TradingView.
Is your wallet green? look at the TRX Profit Calculator
The decoupling of BTC price action caused TRX to reclaim a crucial and previous support zone of $0.076 – $0.078. The move could offer a long chance, but there was a caveat.
Can TRX move forward?
Source: TRX/USDT on TradingView
Since August 22, the Relative Strength Index (RSI) has been above 50, indicating that buying pressure has eased in recent days.
Similarly, the Chaikin Money Flow (CMF) has not fallen below zero since the beginning of August. It demonstrates strong capital inflows to TRX.
The next critical resistance level was at USD 0.080 and could be the next target if the bulls stay on course. If so, a further rally could provide a long opportunity, targeting $0.080 with an entry into the support zone ($0.076 – $0.078).
But the long chance is a risky game. Although TRX decoupled from BTC last week, there were signs of re-coupling, as evidenced by a positive correlation coefficient with BTC. Thus, a weak BTC could lead TRX to crack the support zone and invalidate the long setup.
A candlestick session close to the support zone ($0.076 – $0.078) will invalidate the long idea.
Buyers had market control
Source: Coinalyse
According to Coinalyze, the Cumulative Volume Delta (CVD) has had a positive slope since August 18. It illustrated that buyers steadily gained market control from mid-August.
How many Worth 1,10,100 TRX’s today?
Over the same period, open interest rates (OI) improved. It rose from about $44 million (August 18) to over $53 million at the time of writing. The rise indicates improved demand for TRX in the derivatives segment – a bullish bias.
Traders should monitor BTC price movements and TRX correlation to optimize trade setups and minimize losses.