TRON [TRX] has high utility value and is a leading stablecoin settlement platform. A recent AMBCrypto report showed that USDT transfers dominated the weekly transaction counts.
The fee burn mechanism and increased staking also contributed to the protocol’s value. Digital payments platform Wirex announced a fully on-chain payment layer on TRON, designed for everyday spending.
TRON to resume its bullish trend?
The weekly chart showed a bullish swing structure for TRX. The rally from March to August reached from $0.21 to $0.37. The pullback towards the end of the year saw the 61.8% level tested as support at $0.272.
Since that retest, TRX prices have bounced higher. The long-term outlook, which had already been bullish, presented evidence that swing traders can look to go long soon.
The OBV has slowly but steadily increased since November, reflecting steady buying pressure. The weekly RSI was at 51, marking an upward momentum shift on the higher timeframes.
Arguing the case that TRON was not ready for a bullish breakout
This is a possibility traders need to be prepared for. The $0.30 was a psychological resistance level that also served as a supply zone in the first two weeks of November.
At the time of writing, TRX had faced a lower timeframe rejection on Saturday, the 10th of January. It advanced to $0.3025 but declined by 1.19% to $0.2990 at press time.
The Bitcoin [BTC] momentum has also stalled in recent days. If the crypto leader begins to drop back below the $89k area, it could bring a new wave of selling across the market and upon the TRON token.
Traders call to action- Look to buy the breakout
The $0.3012 level was the swing high from early November on the 1-day chart.
Given the bullish swing structure on the weekly chart and the imminent breakout potential of TRX, traders can wait for this level to be reclaimed as support before buying.
The next price targets would be $0.324 and $0.347. On the other hand, a drop below the $0.29 level would invalidate the bullish setup.
Final Thoughts
- TRON has been experiencing an unbroken lower timeframe uptrend since mid-December.
- The longer-term price action highlighted the importance of the $0.3 resistance, and its breach should give traders a bullish setup.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
