As a prominent player in the blockchain arena, Tron (TRX) has recently been making waves with its impressive performance. With a notable uptick in the past few days, the Tron price rally could be set to continue. Since mid-November, TRX has been trading within a certain range, but a forceful breakout has occurred in the last couple of days. Despite the resistance zone of a higher timeframe still impacting the price, the buying force currently holds the upper hand.
Tron’s Ascending Trend Amidst Market Pressure
Over the last three days, TRX has displayed a strong upward trend. This is particularly noteworthy given that Bitcoin (BTC) and the rest of the cryptocurrency market have been under significant selling pressure. Adding to the positive news, Tron’s blockchain recently hit a new landmark, with the total number of accounts surpassing 206 million.
The breakout from the range is a significant positive development. The TRX one-day price chart reveals a surge in buying volume in recent days. The On-Balance Volume (OBV) indicator has shot up, reflecting this fact, and the price concluded a daily trading session well above the range highs at $0.1092. It’s plausible that a pullback to this area could occur in search of liquidity before the next upward move. However, the momentum and market structure are currently tilted in favor of buyers.
Significance of the Bearish Order Block
A bearish order block, highlighted by a red box extending from $0.1028 to $0.1175, was evident on the 1-week chart. In November 2021, TRX experienced a strong rejection from this area, leading to a drop to $0.0514 two months later. Therefore, a weekly close above the $0.1175 mark would be extremely significant. This could indicate that TRX is primed for another rally to $0.142 in the upcoming months. However, a retest of the same resistance zone as support could occur before the rally.
Examining Liquidation Levels on Lower Timeframes
The current bullish trajectory of TRX doesn’t seem to be nearing its end. Further gains are indeed possible. An examination of the liquidation levels of the past week provides insights into TRX’s potential next moves. The highly positive cumulative liq levels delta indicates that long liquidation levels significantly outweigh the shorts. This suggests that a price drop could offer a more attractive liquidity hunting ground. However, this doesn’t necessarily mean an immediate price drop is imminent.
On the higher side, a significant number of liquidation levels, each measuring $1.5 million or more, exist at $0.118 and $0.12. TRX could ascend to these levels and even higher before a reversal. Conversely, a fall to the $0.113, $0.11, and $0.1 levels could present an enticing buying opportunity, as well as a retest of the range highs, bolstering the chances of a bullish response.
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Please note: The information provided does not constitute financial, investment, or trading advice and is purely the author’s perspective.
