Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- TRON had a bullish structure on the price chart with a higher time frame
- The slow move past resistance on the weekly chart indicated bullish intentions, and long-term bulls can be confident in their beliefs
TRON [TRX] was in a strong uptrend on the one-day chart. It has slowly but steadily worked its way past the $0.08-$0.09 resistance band and has shown good prospects for further gains.
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A recent report from AMBCrypto on October 8 noted that TRON’s technical indicators were bearish. A pullback to $0.085 has been going on for a week. This key level could determine whether TRX can move higher this week, and Bitcoin’s [BTC] price movements could influence the path of TRX.
The bulls need to defend $0.0858 to maintain the late September gains
Source: TRX/USDT on TradingView
The price report indicated that a decline below $0.085 could see TRX return to $0.082. This was a higher low on the daily chart that TRX posted on September 21st. A move below this level would shift the current bullish market structure to bearish.
On-Balance Volume (OBV) has seen a steady upward trend in 2023. It alternated with deep pullbacks, just like the price. It was likely that this trend would continue. The Fibonacci extension levels (light yellow) showed that the next target was the $0.101 level, the 23.6% extension. These levels are plotted using the rallies that took place in June and July.
The red outline marks the bearish order blocks (OB) of the weekly chart. These were resistance zones that could take the bulls weeks to break through. The next OB traded at $0.105, suggesting swing traders could look for gains at $0.101 and wait for a new retracement for their next buying opportunity.
The steady rise in OI in September eased market sentiment
Source: Mint glass
The Open Interest (OI) chart showed an upward trend in early September. In the second half of the same month, the index rose again, with a small decline from September 16 to 21. These dates coincided with TRX’s rally and its minor pullbacks. Market sentiment was therefore firmly bullish over the past month.
The first week of October saw steady OI as prices also hovered around $0.085. This suggested that some speculators were sidelined and waiting for a response from the support level.
How much is 1, 10 or 100 TRX worth today?
At the time of writing, Bitcoin was trading at $27.5k. The King Coin has a bullish outlook in the near term as recent losses have helped accumulate liquidity in the $27.2k-$27.5k region. A rise for BTC would likely lead to a rise in TRX as well.