Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- Tron graced its 2022 high of $0.093.
- Open interest rates increased; financing rates fell.
Tron [TRX] was an outlier in the weekend (July 22/23). It pumped more than 15%, rising from $0.0803 to $0.0944 during the early Asian session on July 22. But the huge pump dropped to previous resistance and breakout levels at the time of writing.
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Unlike TRX’s massive price pump, BTC struggled to cross $30k as of writing. BTC bears seemed close enough to flip the $30k into resistance.
Nevertheless, the Tron ecosystem recorded an impressive adoption rate than Ethereum [ETH]with over 5 million daily transactions.
Will the escape level save bulls?
Source: TRX/USDT on TradingView
The H12 bearish order block (OB) from $0.0826 – $0.0858 (red) was a brief roadblock in mid-July. Zoomed out to capture 2022 price action, the above bearish OB corresponded to the May 2022 price ceiling.
But the recent price pump passed the bearish OB and rose above the 2022 highs of $0.093. However, with muted BTC price action, the move above the bearish OB could be a hunt for liquidity, as exemplified by the long candlestick wick.
Ergo, the confluence area of the bearish OB and the 61.8% Fib level ($0.0829) could provide bulls with formidable ground to bounce off. But the area can only hold up if BTC stops posting losses.
But if BTC drops below $29.5k, TRX could drop further towards the ascending trendline support or 50% Fib level at $0.0794.
The RSI has hovered above neutral levels since mid-June, indicating strong buying pressure over the same period. Similarly, the OBV improved, increasing demand for TRX since mid-June.
Open Interest increased; financing rates fell
Source: Coinglass
How many Worth 1,10,100 TRX’s today?
According to Coinglass, the price pump over the weekend was marked by an increase in the Open Interest (OI) rate from about $65 million on July 21 to >$100 million at the time of writing. That is a bullish cue and leverage on bulls.
However, during the same period, funding rates plummeted. It could tap into sellers in the market and reinforce the previous proposition of a hunt for liquidity over the bearish OB.
Source: Coinglass
