TRON bears remain in control but TRX price downside limited at $0.08
- TRON price action shows a bearish Ichimoku breakout developing.
- Oscillator readings indicate that any move lower could be limited.
- Strong support exists near the $0.08 value area.
TRON price has entered into the most bearish trading conditions on its daily Ichimoku chart since June 2021. An Ideal Bearish Ichimoku Breakout entry was generated last Friday, but it could be a developing bear trap.
TRON price action has mixed signals, may dip to $0.08 before creating new highs
TRON price has displayed a relatively muted response to the steep drop on Friday. The resulting sell-off on Friday positioned TRON into extremely bearish trading conditions, but the bears have been unable or unwilling to keep up with the selling pressure.
Reasons why the perceived inability for short-sellers to take control could be due to the gap between the daily candlestick bodies and the Tenkan-Sen. Additionally, the Optex Bands oscillator shows TRON price trading in extreme oversold levels, not seen since July 2021.
A key test of near-term resistance is ahead at the critical $0.10 value area. $0.10 is not just an important psychological number, but it also contains the 2021 Volume Point Of Control, Tenkan-Sen, and Senkou Span A. Sellers may be waiting to trigger bearish pressure on TRON price at that level.
The 50% Fibonacci retracement and second-highest high volume node in the 2021 Volume Profile, share the $0.09 level. If TRON price falls below that support, then a quick trip towards $0.08 is probable. The 61.8% Fibonacci retracement is at $0.08, along with a high volume node.
TRX/USDT Daily Ichimoku Chart
For TRON to resume a clear uptrend and a move towards new all-time highs, it must fulfill an Idea Bullish Ichimoku breakout entry. For that to occur, TRON has an extensive road ahead of it. TRON would need to close at or above the $0.115 value area to resume the prior bull market.
Author
Jonathan Morgan
Independent Analyst
Jonathan has been working as an Independent future, forex, and cryptocurrency trader and analyst for 8 years. He also has been writing for the past 5 years.
