Tron: Why TRX traders must identify these signs of a possible reversal #Tron #TRX #traders #identify #signs #reversal Welcome to JibGlobe, here is the new resources we have for you today:
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.
While the crypto fear and greed index was hitting its record low, the market still exhibited an ‘extreme fear’ sentiment. After a substantial retracement toward the $0.04-level, Ton [TRX] saw a decent recovery over the last few days.
A robust bearish effort to prevent a close above the 23.6% Fibonacci resistance can cause a short-term setback on the chart. At press time, TRX was trading at $0.06443, up by 5.26% in the last 24 hours.
TRX Daily Chart
On a relatively longer timeframe, TRX saw improvements after dropping towards its yearly low on 15 June. Further, this recovery entailed a bearish rising wedge-like set up after the recent uptick in buying pressure.
Meanwhile, the 20 EMA (red) and the 50 EMA (cyan) fell below the 200 EMA (green) to exhibit a strong bearish behavior. This death cross can impair the medium-long-term ability of the buyers to propel trend-altering rallies.
Also, the 23.6% Fibonacci level can undermine the immediate buying effort to test the $0.07-zone. In this case, any reversals from the current pattern would open a doorway to test the $0.057-$0.06 range.
The investors/traders must carefully assess the macro-economic sentiments affecting the broader sentiment before placing any bets. Any bearish invalidations could register short-lived gains from the $0.069-$0.07 range.
The Relative Strength Index saw a solid growth over the past week from its oversold region. Any reversals from the 41-44 range resistance can aid the sellers in propelling a patterned breakdown on the chart.
Also, a reversal on the CMF would affirm the existence of a bearish divergence with the price. Finally, any bullish crossovers on the MACD lines could invalidate the bearish tendencies.
TRX saw a death cross on the daily timeframe alongside the bearish divergence on the CMF. Also, with the bearish rising wedge-like setup approaching the 23.6% level, TRX could see a setback toward the $0.057-$-0.06 range.
However, the investors/traders should consider Bitcoin’s movement and its impact on broader market perception to make a profitable move.