Is TRON about to reverse the bearish trend?

TRON (TRX) has closed the daily trading session above the support level of $0.274 twice in the past ten days. Both times, the price has adjusted back to the support level of $0.266.

The bulls and bears are vying for control of the range peak over the past five months at the level of $0.274. So far, there has been no clear breakout or decisive rejection.

Current evidence suggests a higher likelihood of a price decrease, especially if Bitcoin falls below the support zone of 102,000 dollars.

TRX Price Chart | Source: TradingViewThe bottom level of the TRX trading range is at $0.22, and the average level of the range is $0.247. At the end of April, TRON also went through a similar consolidation phase around this average level before a bullish breakout occurred. This average level had also previously hindered the bulls in February.

Currently, the consolidation process around the 0.27–0.275 dollar range is accompanied by the OBV (balanced volume) decreasing over the past few weeks. Similar to the price, the OBV has recently not shown a clear trend.

An increase in buying pressure accompanied by a move above the $0.274 level will be a reliable sign of a strong breakout.

TRON may face difficulties in breaking through the local high

Source: CryptoQuantAccording to data from CryptoQuant, the spot trading volume of takers* has shifted to a downward trend, indicating that the market is in a phase where takers are leaning towards selling.

This index measures the accumulated difference between the buying and selling volume of takers in the spot market over a 90-day period.

In the first half of May, this index remained positive and showed an upward trend, but it has started to reverse in the past 10 days.

Source: CoinglassThe liquidation map analysis over 1 month shows that TRX has the potential to drop to a support level of $0.255 or lower, around $0.24.

There is a cluster of liquidity concentrated around the local bottoms formed in May, which may pull the price down lower to "search for liquidity."

The level of $0.282 also has a high short position liquidation density, so it may become a target in the coming days.

Traders should be cautious when opening Long positions around $0.28 and Short positions around $0.255.

*Taker (The taker) is the person who executes a trade immediately at the current market price available, while the “Maker” (the maker) is the person who places a buy or sell order at a more specific price. Therefore, in a buy-sell transaction, the person who executes the trade immediately (Taker) is the buyer or seller at the price already provided on the market.

Minh Anh