TRON [TRX] has been experiencing some lukewarm buying pressure as it tested the 2025 range high. Despite managing to close a daily trading session above the $0.274 level twice in the past ten days, the token’s price saw a retracement to the $0.266 support level on both occasions. The battle between bulls and bears for control of the five-month range high at $0.274 has not resulted in a clear breakout or rejection yet.
The current evidence suggests a potential bearish turn, especially if Bitcoin [BTC] falls below the $102k demand zone. The TRX range low sits at $0.22, with the mid-range level at $0.2475. Historically, TRON has experienced consolidation phases around the mid-range level before bullish breakouts. The current consolidation around $0.27-$0.275 has seen a decline in On-Balance Volume (OBV), indicating a lack of trend in both price and volume.
Data analysis indicates that TRON may struggle to breach the local highs, with the Spot Taker Trading Volume showing a Taker Sell Dominant phase. The cumulative difference in spot taker buy and sell volumes over 90 days has turned bearish in the past ten days, signaling increased selling pressure. Additionally, the 1-month liquidation heatmap suggests that TRX could fall towards $0.255 or lower, potentially reaching $0.24 due to liquidity clusters around the local lows made in May.
Traders should exercise caution and be mindful of potential short liquidations around the $0.282 level, which could be targeted in the coming days. It is advisable to avoid going long at $0.28 and consider going short around $0.255 to mitigate risks. As always, it is important to note that the information presented does not constitute financial, investment, trading, or any other form of advice, and is solely based on the writer’s opinion.
In conclusion, TRON’s price action and market dynamics suggest a potential trend reversal, with increased selling pressure and liquidity clusters pointing towards a bearish outlook. Traders should monitor key levels and exercise caution in their trading strategies to navigate potential price fluctuations effectively.