TLDR
- TRON (TRX) is approaching a crucial resistance level at $0.1443, with bulls pushing for a breakthrough.
- Technical indicators like the RSI suggest growing bullish momentum for TRX.
- TRX is trading above its 100-day Simple Moving Average on both 4-hour and daily charts.
- 94% of TRX holders are currently in profit, despite the price being 55% down from its all-time high.
- Total open interest for TRX has reached a five-month high of $71 million, potentially indicating higher volatility ahead.
TRON (TRX), the cryptocurrency powering the TRON blockchain network, is approaching a crucial resistance level at $0.1443, with bulls showing renewed strength after a brief pullback.
As of August 19, 2024, TRX is trading at approximately $0.136, up 2.2% in the past 24 hours, with a market capitalization of $11.8 billion and a daily trading volume of nearly $300 million.
Technical analysis of TRX’s price chart reveals several bullish indicators. On the 4-hour chart, TRX has shown significant momentum as it trades above the 100-day Simple Moving Average (SMA), signaling increased market confidence.
The Relative Strength Index (RSI) on both the 4-hour and daily charts has crossed above the 50% level and is moving towards the overbought zone, suggesting intensifying buying pressure.
The recent price action has formed a bullish trend line with support at $0.1330 on the hourly chart. If TRX maintains this upward trajectory, it could target the $0.1380 level or even push towards $0.1420. A successful breakout above the $0.1443 resistance could potentially drive the asset towards its all-time high of $0.1804 and beyond.
If TRX fails to break above the $0.1443 resistance, it may retrace towards previous support levels. Key support zones to watch include $0.1335, $0.1320, and $0.1300. A drop below these levels could signal a deeper correction.
One notable development is the surge in total open interest for TRX, which has climbed from $47 million on August 12 to $71 million as of August 19, reaching a five-month high. This significant increase in open interest could potentially lead to higher liquidations and price volatility.
Despite TRX trading 55% below its all-time high of $0.30 set in January 2018, data from IntoTheBlock shows that approximately 94% of TRX holders are currently in profit. This high percentage of profitable holders could potentially lead to profit-taking if the price continues to rise, potentially capping further gains.
The concentration of TRX tokens adds another layer of complexity to the asset’s price dynamics. Over 56% of Tron tokens are held in whale wallets, with 34% belonging to retail investors. This concentration could contribute to increased price volatility, as large holders have the potential to significantly impact the market with their trading decisions.
Social sentiment around TRX remains mostly bullish, according to data from Santiment. The weighted sentiment indicator shows a positive bias, which could continue to support upward price movement. However, historically, TRX has often faced price corrections despite traders maintaining a bullish stance on the asset.
As TRX approaches the critical $0.1443 resistance level, investors and traders are closely watching for signs of a breakout or rejection. A successful breach of this level could open the door to further gains, potentially targeting the $0.15 to $0.18 range. Conversely, a failure to break through could lead to a retest of lower support levels.
