Home Altcoins News TRON Under Bearish Pressure as TRX Nears Key Support

TRON Under Bearish Pressure as TRX Nears Key Support

Tron Price

TRON (TRX) is currently experiencing significant bearish pressure, with technical indicators and price action pointing toward further declines. Despite efforts from key market participants, such as World Liberty Financial’s purchase of $2.6 million in TRON tokens, the price momentum for TRX remains weak. The key concern now is whether the bulls can defend the crucial $0.22 support level, which could determine the token’s immediate future.

Technical Indicators Point to Weakening Momentum

The recent price movement for TRON has raised concerns among investors. Over the past month, TRX has been trading within a defined range between $0.274 and $0.22, with the mid-range support around $0.247. However, the token has recently fallen below this mid-point, signaling increased selling pressure.

Technical analysis by crypto expert Burak Kesmeci highlights two key moving averages for traders to watch closely. Currently, these moving averages are positioned at $0.26 and $0.15. A break above the $0.26 resistance could lead to a short-term price surge, but if TRX continues to slide, it could find itself heading toward the lower moving average at $0.15.

On-Balance Volume (OBV) Suggests Distribution, Not Accumulation

A deeper look at TRX’s On-Balance Volume (OBV) reveals a worrying trend for bulls. The OBV, which tracks buying and selling pressure by adding volume on up days and subtracting volume on down days, has formed lower lows throughout the current price range. This signals that rather than seeing accumulation of TRX, the market is in a phase of distribution—where larger holders are selling their positions.

This distribution phase further suggests that selling pressure is outweighing buying interest, adding to the negative outlook for TRON. In combination with the price action, the OBV’s behavior is a clear sign that the token may be on track for further declines unless there is a sudden shift in market sentiment.

Active Addresses Provide a Glimmer of Hope

While the broader market sentiment is increasingly bearish, one positive sign for TRON is the growth in daily active addresses. Data from IntoTheBlock shows that the number of unique addresses engaging with TRX has been steadily increasing since April 2024. This growth suggests that, despite recent price struggles, there is ongoing interest from long-term holders and users of the TRON network.

However, it’s worth noting that the short-term data doesn’t paint as optimistic a picture. The 7-day change in active addresses has dropped by over 26%, reflecting a decrease in recent trader engagement. This reduction in active addresses aligns with the recent decline in TRX’s price, reinforcing the bearish trend.

The $0.22 Support Level: A Key Battleground

The current support level of $0.22 is crucial for TRX. If the bulls fail to defend this level, TRON could face a sharp decline. A breach of the $0.22 support would likely lead to further losses, with the next possible support level sitting at $0.15.

For the bulls to regain control, there must be a significant reversal in market sentiment. This would require not only a defense of the $0.22 level but also a shift in the on-chain metrics, such as the OBV and active addresses, to reflect increased buying pressure.

Conclusion

TRON is currently under heavy bearish pressure, with both technical indicators and market sentiment suggesting further declines. While there is some hope in the form of active address growth, the overall outlook remains uncertain. Investors and traders will be closely watching the $0.22 support level to see if TRX can avoid further losses or if the selling pressure will continue.

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Steven Anderson

Steven is an explorer by heart – both in the physical and the digital realm. A traveler, Steven continues to visit new places throughout the year in the physical world, while in the digital realm has been instrumental in a number of Kickstarter projects. Technology attracts Steven and through his business acumen has gained financial profits as well as fame in his business niche. Send a tip to: 0x200294f120Cd883DE8f565a5D0C9a1EE4FB1b4E9

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