Journalist
Posted:
The volatility on the 14th of December took Bitcoin down 3.2%, but TRON managed to rally 4.5% in just over a day, showing relative strength against Bitcoin [BTC].
Its daily trading volume was up by 45%, according to CoinMarketCap data.
On the 11th of December, TRON DAO announced a partnership with Revolut, a global fintech company.
With its 65 million users, Revolut’s choice of TRON for blockchain infrastructure integration reflected its confidence in the TRON network’s capacity.
Will the news have an impact on TRON’s [TRX] price trends in the coming days?
TRON price prediction
Source: TRX/USDT on TradingView
TRX’s structure was bearish on the weekly chart, evidenced by the break of the higher low (orange) at $0.3 from September. Another weekly low at $0.259 could offer support in case of a retest.
The momentum was gaining bearish strength. The MACD formed a bearish crossover in September and has been falling since then.
The MACD line was below zero, a crossover that signified that the pullback could turn into a sustained downtrend.
In contrast, the CMF remained above +0.05 to signal sizeable capital inflows and buying pressure. With opposing indicators, the conclusion here is that the weekly chart is bearish, based on the structure.
Source: TRX/USDT on TradingView
The 4-hour chart showed a bearish structure as well. To shift it bullishly, it needs to climb back above the $0.282 level, which hasn’t yet occurred.
The CMF signaled increased buying pressure in the past 24 hours, and the MACD reflected the surge in upward momentum.
A bull trap potentially at play
Given the recent momentum and the relative strength against Bitcoin, TRX appears primed to climb higher. However, the structure remained bearish across the weekly, daily, and H4 timeframes.
The price may bounce toward the Fibonacci retracement levels at $0.283 and $0.286, thereby breaking the 4-hour structure. AMBCrypto expects that such a move would likely be short-lived and retraced.
Be prepared for TRON drawdown
A bounce to $0.283-$0.286 would likely present a selling opportunity. The area up to $0.29 represented a supply zone. If the buying pressure increases and drives a TRX move past $0.29, the bearish idea would be invalidated.
If not, swing traders can target the local low at $0.27 and $0.259 to take profits.
Final Thoughts
- TRON performed impressively over the past two days, making gains while Bitcoin slumped.
- The price action clues suggested that this rally might face a reversal soon.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
