Buying TRON in $0.062 area to sell it at this level could be profitable
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
TRON [TRX] has defied the broader market trend on certain occasions in the past four months. For example, when most of the altcoins began to fall in early April, TRX actually rallied from $0.058 to $0.088, a 50% move. It has also seen immense volatility on the price charts in recent weeks.
Messari showed transaction volume to be north of $100 million over the past week. In late May, these figures were well above the $300 million mark, but they have crept lower since.
Source: TRX/USDT on TradingView
In January, TRX was within a strong downtrend characterized by a series of lower highs and lower lows. In February and March, the bulls were able to defend the $0.058 support level. Additionally, the buyers were even able to force a shift in the bearish market structure.
The move above the $0.07 level in late March saw the long-term bias shift bullish, and TRX registered a series of higher lows thereafter. Yet, the wave of buying was not enough to stop the cratering prices in June. The move back below $0.07 flipped the longer-term structure to bearish once more.
Source: TRX/USDT on TradingView
The four-hour chart highlighted two important details. The first was the relative lack of trading volume throughout June and July. The second was that the price appeared to establish a range between the $0.062 (cyan) and $0.07 (red) regions.
The Fibonacci retracement levels (yellow) also highlighted certain levels as significant support and resistance. Based on price action, buying TRX in the $0.062 area and selling the asset at the $0.07 area could be profitable in the next week or two.
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