Tron faces mounting bearish pressure, with a potential drop to the 50-day EMA as market sentiment shifts.
As the crypto market pulls back on Thursday, the bearish pressure over altcoins increases. Amid such pressure, Tron is down 1.65% on Friday, risking a potential drop to the 50-day EMA at $0.2629.
Tron Price Analysis
On the daily chart, the TRX price fails to sustain a bullish trend, despite a 2.57% surge on Thursday. Undermining the three consecutive bullish candles, TRX takes a bearish turn around with a near 2% intraday drop.
At present, TRX trades at a market price of $0.2775, retracing towards a crucial support trend line. Furthermore, it marks a bullish failure to extend the recent consolidation range breakout due to a broader market correction.
The daily RSI line maintains a declining trend, while TRX fluctuates near the $0.28 resistance level. This highlights a hidden bearish divergence in comparison to the price trend, signaling a potential downfall.
As per the price action analysis, the immediate support remains the 50-day EMA at $0.2628, near the upper boundary of the consolidation range. Notably, the 50-, 100-, and 200-day EMAs maintain a bullish alignment, increasing the number of dynamic supports to prolong the longer-term bullish trend.
However, a potential closing above the $0.2806 mark could revert TRX towards the 50% Fibonacci level at $0.30.
Derivatives Market Turns Bearish on Tron
Amid declining TRX prices, sentiment in the derivatives market shifts in favor of Tron. The open interest is down 1.28%, reaching $264 million, indicating a decline in interest among derivative traders.
This aligns with the increased liquidations over the past 24 hours, with long liquidations rising above $908,000, while short liquidations spike beyond $607,000. With the larger buyout of bullish traders, the OI-weighted funding rate flips to a negative value of -0.0005%.
Additionally, the long-to-short ratio indicates a sudden increase in short positions, resulting in a ratio of 0.8793. Hence, the derivatives traders anticipate a significant crash in TRX as the broader market turns volatile.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
