TRON’s TRX price induces a liquidity purge that can lead to substantial losses


  • TRON price has invalidated the highly favored triangle thesis.
  • TRX price has retraced 25% since the newly founded low at $0.046 was established.
  • Invalidation of the downtrend is a breach above $0.075.

TRON price wipes liquidity and could be setting up for another decline. The liquidity hunt has poured in new liquidity, making it a favorable digital asset for intraday trading and scalps.

TRON price is questionable 

TRON price has reached last week's bearish target of $0.055. The bearish trade setup was forecasted on June 7, warning traders not to believe in the coiling triangular pattern that surrounded the TRX price. This week, the bears fully validated the contrarian call as TRON not only breached the bearish target zone but fell beneath it to $0.046, wiping out the bullish triangle's liquidity as well. Now that the triangle has been proven invalid, newer bears will likely enter the market with ambitious aims at $0.04 and $0.03.

TRON  price has already retraced 24% since the new year's low was established as the price currently trades at $0.0591. A sideways range could be on the cards, making the TRX price favorable for intraday traders. The steep decline and extended target breach justifies a bearish bias, but traders should be wary of joining the party too soon. The Relative Strength Index has breached buyers' support levels for the first time since December 2021. However, an oversold bounce is common when targets extend into unexpected liquidity levels. If market conditions persist, TRON price could retrace 50% of the decline since June 7, targeting $0.0659 before heading back to the mid $0.04 level.

tm/trx/6/15/22

TRX/USDT 2-Day Chart

Still, an invalidation point for the downtrend is necessary. Especially during volatile markets, which many analysts believe the crypto market will soon experience. A break above $0.077 could signal the end of the catastrophic fall for TRX price. If this bullish event were to occur, the bulls could rally as high as $0.107, resulting in an 85% increase from the current TRX price.

 


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