- TRON looks bearish on both price action and technical indicators.
- The steady ascent in active addresses and the purchases from World Liberty Financial was not enough to keep the sellers at bay.
The price outlook for TRON [TRX] was bearish on the daily timeframe. Technical analysis showed momentum and buying pressure were waning.
The Trump-linked World Liberty Financial’s purchase of an additional $2.6 million worth of TRON tokens did not ease the bearish fears.
Source: Arkham Intelligence
The Bitcoin [BTC] price slump over the past 24 hours pushed TRX below a key support level. AMBCrypto examined the price action to understand where buyers might make a comeback.
Technical support levels to watch for
Crypto analyst Burak Kesmeci pointed out in a post on CryptoQuant Insights that there were two key moving averages for investors to keep an eye on.
At the time of writing, these daily moving averages were at $0.26 and $0.15.
The analyst noted that a breach of the overhead resistance could translate into quick gains for the token.
Source: TRX/USDT on TradingView
The 1-day price chart outlined a range (purple) that TRX has been trading within over the past month. The range reached from $0.274 to $0.22, with the mid-point at $0.247.
The selling pressure across the market in recent hours drove TRON below the mid-range support.
The OBV has formed lower lows during the range formation. This was a piece of bad news for the bulls. The consolidation period was not accompanied by accumulation, but rather by distribution.
This indicated that the 78.6% Fibonacci retracement level that coincided with the range lows might soon be lost.
Data from IntoTheBlock showed that despite the bearish clues price action and steady selling pressure, the daily active addresses metric has been in a steady uptick since April 2024.
Realistic or not, here’s TRON’s market cap in BTC’s terms
While this metric was in an uptrend over the long-term, the 7-day active address change was -26.37%, a sizeable reduction.
Overall, it appeared that the bullish prospects of TRON might be waning. It is imperative that the bulls defend the $0.22 support level upon a retest.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
