At the time of writing, TRON [TRX] was up 0.85% over the past week – One of the only crypto assets in the top 20 by market cap to register gains over the past week. The altcoin had rallied to a local high of $0.317 on Friday, 27 March. However, it soon erased these gains and was down 1.48% in 24 hours.
And yet, since the early February crash, TRON has shown some resilience on the price charts. It was up by 15.47% in just over 7 weeks, and seemed to be in a position to challenge the mid-January high of $0.32.
This might be a no-trade zone for TRX until the altcoin reveals what is in store next.
Range formation and the triggers for the next TRX move
The 1-day trend appeared to be bullish, with the MACD reflecting upward momentum. At the same time, it was almost at the four-month range’s high at $0.319. The range’s low was at $0.271, and the rally since the February crash began from these lows.
As things stand, despite the relative strength of TRX recently, its bullish run might be ending soon. The OBV did not make new highs in recent weeks to show buyer dominance. If it had, it would have pointed towards a potential breakout.
The lacklustre OBV might be a result of the generally mediocre trading volume in the TRON markets since December. No uptrend since then has been borne by extraordinary volume.
Should trader bias flip bearish or remain bullish?
The H4 timeframe’s structure has remained bullish, though momentum and the OBV have begun to recede too. The retest of $0.309 on Friday, 27 March, saw a positive reaction in recent hours.
And yet, the higher timeframe range must be respected until it is cleanly breached. Therefore, despite the short-term bullish structure, TRX traders and investors can look to take profits and prepare for a move towards the range lows.
Meanwhile, a daily session closing above $0.32 would invalidate the bearish bias outlined here.
Final Summary
- TRON has been steadily bullish since the market crash in the first week of February.
- The four-month range formation’s highs are being tested, but TRX might have finished its rally already.
