Volatility on December 14 sent Bitcoin down 3.2%, but Tron managed to rise 4.5% in just over a day, showing relative strength versus Bitcoin [BTC].
Daily trading volume increased by 45% CoinMarketCap data.
On December 11th, TRON DAO announced… Partnership with Revolutiona global financial technology company.
With its 65 million users, Revolut’s choice of TRON for blockchain infrastructure integration It reflects her confidence in TRON network capacity.
Will the news have an impact on… You see [TRX] Price trends in the coming days?
Tron price forecast
Source: TRX/USDT on TradingView
The structure of TRX has been bearish on the weekly chart, as evidenced by the breakout of the higher low (orange) at $0.3 from September. Another weekly low at $0.259 could offer support in the event of a retest.
Momentum was gaining downward strength. The MACD formed a bearish crossover in September and has been declining since then.
The MACD line was below zero, a crossover indicating that the pullback may turn into a sustained downtrend.
In contrast, the CMF remained above +0.05 to indicate significant capital outflows and buying pressures. With conflicting indicators, the conclusion here is that the weekly chart is bearish, based on the structure.
Source: TRX/USDT on TradingView
The 4-hour chart also shows a bearish structure. To turn it higher, it would need to rise back above the $0.282 level, which has not happened yet.
The CMF indicated increased buying pressure over the past 24 hours, and the MACD reflected the rise in bullish momentum.
There is probably a trap for the bull
Given the recent momentum and relative strength against Bitcoin, TRX appears poised to move higher. However, the structure remained bearish on the weekly, daily and 4-hour time frames.
The price may bounce towards the Fibonacci retracement levels at $0.283 and $0.286, thus breaking the 4-hour structure. AMBCrypto expects that such a move will likely be short-lived and be re-tracked.
Be prepared to withdraw TRON
A bounce to $0.283-$0.286 would likely represent a selling opportunity. The $0.29 area represents a supply area. If buying pressure increases and pushes TRX beyond $0.29, the bearish notion will be invalidated.
If not, swing traders can target the local lows of $0.27 and $0.259 to take profits.
Final thoughts
- TRON has had an impressive performance over the past couple of days, posting gains while Bitcoin retreated.
- Price action indications suggest that this rally may face a reversal soon.
Disclaimer: The information provided does not constitute financial, investment, trading or any other type of advice and represents the opinion of the writer only.
