Disclaimer: The conclusions of the following analysis are the sole opinions of the author and should not be taken as investment advice.
- TRX abandoned its low volatility phase after the general market pullback
- Barring exceptions, crypto funding rates on most exchanges represented a bearish edge
By contesting its compression phase in the range of $0.061 to $0.064 for more than a month, tron [TRX] witnessed a volatile bearish breakout over the past couple of days.
Lily Tron Price Prediction 2023-24
The $0.064 ceiling has restricted bullish efforts for almost 11 weeks. The ability to buy to now protect the $0.053 support could help buyers prevent a prolonged bloodbath.
At press time, TRX was trading at $0.05688, down 8.98% in the past 24 hours.
Can bulls stop the bleeding?
Since hitting their yearly lows in June this year, buyers have re-entered the market to propel an uptrend. However, the five-month trendline (white, dotted) support (previous resistance) kept the buying rallies in check.
After breaking this barrier, TRX crossed near the 20/50/200 EMA to reflect a rather large bullish edge.
As the bears forced a bearish cross on the 20 EMA (red) with the 50 EMA (cyan) and the 200 EMA (green), TRX corroborated the market-wide selling inclinations.
Even so, a sustained rebound from its immediate trendline support can position the alt for short-term upside. The first major resistance for buyers to conquer is the $0.0585 level, followed by the short-term EMAs.
Any reversal of either of these barriers could accelerate the bearish perception and, therefore, induce a pullback. Under these circumstances, trendline support may continue to offer rebound trends.
Additionally, TRX was in a relatively low liquidity region. Thus, the altcoin would be more susceptible to volatile movements in the coming sessions.
The Relative Strength Index (RSI) marked a comeback from its oversold lows while looking to test its balance. Its higher lows diverged bullishly with the price action. However, buyers could wait for a potential break above the 50 mark to gauge the chances of a change in momentum.
Funding rates on FTX have skyrocketed
After the market-wide fallout, TRX funding rates across most exchanges turned negative after marking a sharp decline. However, its funding rate on FTX has increased over the past day by a significant margin.
Buyers should closely monitor the potential effects of this spike in funding rates on the price of TRX in the coming days.
The objectives would remain the same as those discussed. Finally, investors/traders should consider Bitcoin’s movement and its impact on the broader market perception to make a profitable move.