- Tron's RSI indicator forms a bearish divergence, signaling a trend reversal.
- On-chain data paints a bearish picture, as TRX's long-to-short ratio is below one, and the OI-Weighted Funding rate is negative.
- A daily candlestick close above $0.170 would invalidate the bearish thesis.
Tron (TRX) retested its resistance barrier and declined 6.1% last week. In the Asian session on Monday, it trades at $0.1557. Tron's price action suggests a decline ahead, as the bearish divergence in technical indicators shows. Furthermore, the on-chain data support the bearish thesis as TRX's long-to-short ratio is below one, and the Oi-Weighted Funding rate is negative.
Tron price is poised for a decline after retesting the resistance barrier
Tron price retested its March 7, 2021, high of $0.170 on August 25 and declined 6.1% last week. On Monday, it trades slightly higher by 0.06% at $0.1557.
Additionally, the formation of a higher high on the daily chart on August 25 contrasts with the Relative Strength Index (RSI) indicator's lower high during the same period. This development is termed a bearish divergence and often leads to the reversal of the trend or a short-term decline.
If the $0.170 level resistance holds, Tron could decline roughly 7% from the current trading level of $0.1557 to retest $0.1425, the previous weekly support.
TRX/USDT daily chart
According to Coinglass's OI-Weighted Funding Rate data, it is an important metric for traders and analysts to gauge market sentiment and predict future price movements. This index is based on the yields of futures contracts, which are weighted by their open interest rates. Generally, a positive rate (longs pay shorts) indicates bullish sentiment when long positions pay for shorts. Conversely, negative numbers (shorts pay longs) indicate bearishness, and shorts pay at the expense of longs.
In the case of Tron, this metric stands at -0.033%, reflecting a negative rate and indicating that shorts are paying longs. This scenario often signifies bearish sentiment in the market, suggesting potential downward pressure on Tron's price.
TRX OI-Weighted Funding Rate chart
Additionally, according to Coinglass's data, Binance TRX's long-to-short ratio stands at 0.43. This ratio reflects bearish sentiment in the market, as the number below one suggests that more traders anticipate the price of the asset to fall, bolstering Tron's bearish outlook.
Tron long-to-short ratio chart
However, if TRX's daily candlestick closes above $0.170 and establishes a higher high on the daily timeframe, it may signal a shift in market dynamics that favors bullish sentiment. Such a change could nullify the bearish outlook, leading to a 6% rise in Tron's price to retest the April 17, 2021, high at $0.180.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
![What to expect from Bitcoin in September, historically a red month for BTC](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bitcoin_4_XtraSmall.jpg)
What to expect from Bitcoin in September, historically a red month for BTC
Bitcoin (BTC) on-chain metrics support gains in Bitcoin, however, historically the largest cryptocurrency has yielded negative returns for traders in the month of September. The ongoing cycle is considered different from previous ones with Bitcoin Spot ETFs approved this year and rising institutional demand for the asset.
![Ripple update: 1 billion XRP transfer, SEC could payback $125 million to Ripple if appeal fails](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/Coins/Ripple/Ripple_Coin_31_02_XtraSmall.jpg)
Ripple update: 1 billion XRP transfer, SEC could payback $125 million to Ripple if appeal fails
Ripple unlocked a large volume of XRP tokens on September 1. The transfer was tracked by Whale Alerts and XRP traders pondered on the impact of the large volume unlock. XRP is currently faced with mounting selling pressure and slipped to $0.55 on Sunday.
![Ethereum founder Vitalik Buterin says never sold Ether for profit, ETH slips under $2,400](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Ethereum/ethereum_4_XtraSmall.jpg)
Ethereum founder Vitalik Buterin says never sold Ether for profit, ETH slips under $2,400
Vitalik Buterin, Ethereum founder responded to criticism of Ether on-chain transfers. Buterin’s recent Ether transfers have raised concerns among ETH holders. Ether crumbled under selling pressure since ETF launch and consistent outflows have negatively influenced the altcoin’s price.
![Crypto millionaires double in 2024, cross 172,000 amidst meme coin and AI hype](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bitcoin_5_XtraSmall.jpg)
Crypto millionaires double in 2024, cross 172,000 amidst meme coin and AI hype
Crypto Wealth Report 2024 shared insights into the number of crypto and Bitcoin millionaires and the increase since last year. Nate Geraci of the ETF Store commented on the statistics. Bitcoin trades at $59,062 at the time of writing. The number of Bitcoin millionaires has doubled in 2024, up to 85,400.
![Bitcoin: Will BTC continue its ongoing decline?](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bitcoin_5_XtraSmall.jpg)
Bitcoin: Will BTC continue its ongoing decline?
Bitcoin (BTC) trades above $59,000 on Friday, but it has lost 7.5% this week so far after being rejected around the daily resistance of $65,000. The decline is supported by lower demand from the US spot Bitcoin ETFs, which registered a net outflow of $103.8 million, falling Bitcoin's Coinbase Premium Index, and a spike in Network Realized Profit/Loss. However, some investors seem to be taking the chance to buy BTC amid this price dip, as shown by the Exchange Netflow data.
![Moneta Markets review 2024: All you need to know](https://editorial.fxstreet.com/images/IT/Testing/Review/FXSBadgeCertifiedBackg_XtraSmall.png)
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.