At the time of writing, TRON (TRX) is up 0.85% last week – One of the only crypto assets in the top 20 by market cap to record gains last week. The altcoin rose to a local high of $0.317 on Friday, March 27. However, it soon erased these gains and dropped by 1.48% in 24 hours.
Still, since the crash in early February, TRON has shown some resilience on its price charts. It was up 15.47% in just over 7 weeks and looked well positioned to challenge the mid-January high of $0.32.
This may be a no-trade zone for TRX until the altcoin reveals what happens next.
Triggers for range formation and next TRX move
The 1-day trend appears to be bullish, with the MACD reflecting upward momentum. It was also at $0.319, a nearly four-month high. The low of the range was $0.271, and the rise since the February crash has started from those low levels.
Despite TRX’s recent relative strength, the uptrend may end soon. OBV has not made new highs in recent weeks, indicating buyer dominance. If it were, it would indicate a potential breakout.
The lackluster OBV could be a result of mediocre trading volume overall. TRON markets since December. No uptrend since then has been supported by extraordinary volume.
Should the trader turn to a bearish trend or continue a bullish trend?
The structure of the H4 time frame remains bullish, but momentum and OBV have also started to decline. The retest of $0.309 on Friday, March 27 saw a positive reaction in recent hours.
But still, the higher time period range must be respected until it is clearly violated. Therefore, despite the short-term bullish nature, TRX traders and investors can look to take profits and prepare for a move towards the lows.
Meanwhile, closing the daily session above $0.32 would invalidate the bearish trend outlined here.
Final Summary
- TRON has been steadily rising since the market crash in the first week of February.
- The tops of the four-month range formation are being tested, but TRX may have already completed its rally.
