Tron: Assessing the implications of these warnings on TRX’s recent bull run
After an impressive bullish streak for a few months, the 61.8% Fibonacci resistance reignited the bearish alt trends. The decline from the $0.08 level helped the sellers recover and find a close below the EMA ribbons.
The next candlesticks would likely confirm or invalidate the bearish tilts. A prolonged bullish rally could help buyers retest the 38.2% level ahead of a likely reversal. At press time, TRX was trading at $0.07087.
TRX Daily Chart
TRX has seen a strong rally after dropping to its yearly low on June 15. The recovery from its long-term support has resulted in a bearish rising wedge pattern on the daily chart.
With the EMA ribbons looking north, the buyers were aiming to propel a bullish reversal on the ribbons. As a result, the price action jumped above the $0.06 area.
Any patterned breakdown would set the stage for a short-term retracement. In this case, the potential targets lie in the range of $0.057 to $0.06.
Continued bullish momentum may be short-lived by the resistance of $0.074. Investors should look for rebound signals from this region. In the event of a bounce, the alt could see a pullback towards the $0.065 area. Investors/traders should take note of the broader macro sentiment affecting long bets.
The Relative Strength Index (RSI) finally closed above the middle line. A sustained position above would help buyers maintain the immediate support level on the chart.
On the other hand, any reversal of the Accumulation/Distribution (A/D) indicator would confirm a bearish divergence with the price. Additionally, the Directional Movement Index (DMI) resonated with the bullish narrative by undertaking a bullish crossover, but the ADX continued to show a weak directional trend.
Given the bearish rising wedge pattern alongside falling volumes, TRX might see a dip before rallying. The objectives would remain the same as above. Any bearish invalidation might be limited by the 38.2% level.
Finally, investors/traders should consider Bitcoin’s movement and its impact on the broader market perception to make a profitable move.