The bullish rally for Tron began during the start of 2023 when price formed support at $0.052 level and initiated a rally. The uptrend led to creation of February highs at $0.07307 level, and caused a rise of approximately 42.39%. However, bulls lost their strength and tron began correcting its course.
Bears entered the market and pushed price downwards to form support at $0.0573 level. The price again entered an uptrend forming higher lows from the support of $0.0573. As soon as the price reached near the February highs and major resistance, it formed support at $0.07 level and gained enough bullish momentum to shatter it.
On May 23, TRX price formed a new annual high at $0.07988 level and the candle closed at $0.0786 level. TRX price then entered into a corrective phase and formed a support at $0.0753. The crypto currency price is currently headed toward the annual highs but the only concern is regarding the declining bullish strength.
The previous candle and current candle seems to be rejecting $0.078 level and signalling a less possibility for TRX price to retest the resistance level of $0.0786. If TRX price can break and close above the resistance level, there is a higher probability for the price to head toward the next resistance level of $0.082 causing a rise of roughly 4.30%.
While on the other hand, if Tron price breaks below the recent support, it might decline to $0.072 level for a retest either to fall back into the zone or form a support to rise further upwards.
Tron Quarter 1 Report Released
Recently, the Quarter report of Tron was released by Messari which reported an increase in the number of transactions on the Tron blockchain in the first three months of 2023. The market capitalization of Tron has also increased by roughly 20% Quarter-on-Quarter.
However, the United States SEC has announced several lawsuits against Tron Token. Justin Sun, founder of Tron, and his companies have been charged by SEC for fraudulently manipulating the secondary market of TRX and BTT through extensive wash trading.
Will TRX Price Retest Annual Highs?
Trx price trades above 20,50,100 and 200-day EMAs indicating bullish momentum in the price. RSI has escaped from the overbought zone and is trading at 68.54 suggesting a chance of pullback.
The chaikin money flow score is 0.10 dropping from 0.24 indicating a decrease in strength. The long/short ratio is 1.04 with 51.5% longs and 48.5% shorts in the last 24 hours indicating that buyers are still active in the market.
Conclusion
The market structure and price action of Tron shows that there is possibility of another bullish trend in upcoming weeks if TRX price can stay above the recent support.
Technical levels
Major support: $0.072 and $0.0753
Major resistance: $0.0786 and $0.082
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/05/29/tron-price-prediction-trx-price-upsurge-after-quarterly-report/