After a strong surge, Tron [TRX] managed to reverse a significant amount of losses as it steered clear of its nearest support area. With a market cap of $1.40 trillion, the cryptocurrency market has seen a resurgence of bullish pressure despite resistance at higher levels.
After a mixed start to the day, Tron’s [TRX] daily gains stood at 1.09%, pushing its price to $0.0569. The 25th-largest crypto-asset recorded a market cap of $4.09 billion and a 24-hour trading volume of $613 million.
The low volatility in the TRX market can be a cause of concern as this could mean a continuation of the sideways price action for the coming days.
Tron [TRX] Daily Price Chart:
The moving averages continued to hover above the TRX price, as noted in the daily framed chart. The 200 DMA [Yellow] appeared to be challenging the downsloping 100 DMA [Blue] for a bullish crossover. The former had previously sustained a death cross with the 50 DMA [Pink], resulting in the gradual downtrend that lasted for over three weeks. Another bearish crossover in the near term could be damaging to the bullish trend that has just resumed.
Additionally, the volume has failed to back the increasing price, and the gap could result in a flip towards the negative.
The MACD below the half-line signaled a weak buying demand in the TRX market. The Chaikin Money Flow [CMF] did observe an uptick but it has so far failed to surge above the zero-line, indicating that capital outflow continued to exceed inflow figures despite posting a recovery. A similar sentiment was noted by RSI, which bounced back from the oversold conditions but plateaued just below the 50-median line depicting a sentiment of intensifying sell pressure in the coin market, which could hinder the growth.
To reclaim the yearly highs, Tron first needs to breach the resistance levels posted by the moving averages at $0.06, $0.07, and $0.086. respectively. The support levels, on the other hand, stood firm at $0.045 and $0.028.