TRON under bearish pressure: Can TRX bulls defend $0.22 support?

• TRON looks bearish on both price action and technical indicators.
• The steady ascent in active addresses and the purchases from World Liberty Financial was not enough to keep the sellers at bay.

The price outlook for TRON [TRX] was bearish on the daily timeframe. Technical analysis showed momentum and buying pressure were waning.

The Trump-linked World Liberty Financial’s purchase of an additional $2.6 million worth of TRON tokens did not ease the bearish fears.

Source: Arkham Intelligence

The Bitcoin [BTC] price slump over the past 24 hours pushed TRX below a key support level. AMBCrypto examined the price action to understand where buyers might make a comeback.

Technical support levels to watch for

Source: CryptoQuant Insights

Crypto analyst Burak Kesmeci pointed out in a post on CryptoQuant Insights that there were two key moving averages for investors to keep an eye on.

At the time of writing, these daily moving averages were at $0.26 and $0.15.

The analyst noted that a breach of the overhead resistance could translate into quick gains for the token.

Source: TRX/USDT on TradingView

The 1-day price chart outlined a range (purple) that TRX has been trading within over the past month. The range reached from $0.274 to $0.22, with the mid-point at $0.247.

The selling pressure across the market in recent hours drove TRON below the mid-range support.

The OBV has formed lower lows during the range formation. This was a piece of bad news for the bulls. The consolidation period was not accompanied by accumulation, but rather by distribution.

This indicated that the 78.6% Fibonacci retracement level that coincided with the range lows might soon be lost.

Source: IntoTheBlock

Data from IntoTheBlock showed that despite the bearish clues price action and steady selling pressure, the daily active addresses metric has been in a steady uptick since April 2024.

Realistic or not, here’s TRON’s market cap in BTC’s terms

While this metric was in an uptrend over the long-term, the 7-day active address change was -26.37%, a sizeable reduction.

Overall, it appeared that the bullish prospects of TRON might be waning. It is imperative that the bulls defend the $0.22 support level upon a retest.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion