TRON (TRX) has officially entered overbought territory as of May 9th, raising caution among traders and analysts about a potential short-term correction.
According to data from analyst BorisVest shared by CryptoQuant while the broader momentum behind TRON remains bullish, the current conditions suggest the asset may be due for a cooling-off period. Overbought signals typically indicate that a price rally may be overextended, and a consolidation or pullback could follow as the market seeks equilibrium.
Key Support and Risk Levels
Analysts pinpoint the base support level around $0.25, which remains a crucial zone for maintaining bullish momentum. Should TRON test this level during a correction and hold, the price action could stabilize and resume its upward trajectory.
However, the risk escalates if TRX breaks below the $0.24 threshold. Falling under this key level could trigger a move into oversold territory and open the door for sharper corrections.
“The market may shift from overbought to neutral as it consolidates,” CryptoQuant data indicates. “But a breakdown below support may result in amplified downside volatility.”
What to Watch
Traders are advised to closely monitor:
- RSI and momentum indicators for signs of reversal.
- Price behavior around the $0.25 and $0.24 support zones.
- Volume dynamics that could confirm or reject a correction.
While the long-term outlook for TRON remains constructive, short-term caution is warranted as the asset navigates its current overbought status.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/key-levels-to-watch-as-tron-enters-overbought-territory-raising-the-risk-of-a-correction/