The Crypto Tron Surpasses the Market! Analysis of August 22, 2024

Tron outperforms the crypto market and reaches its highest annual level. Let’s examine the future prospects for the TRX price.

Situation of Tron (TRX)

After hitting a low at $0.045, Tron began an upward trend, partly due to the overall evolution of the cryptocurrency market. Upon reaching $0.145, Tron faced bearish pressure that brought it down to $0.11. It is at this price level that the crypto managed to bounce back, continuing its upward trend to reach a peak at $0.16. It is important to note that this occurred while the entire cryptocurrency market was losing interest. This resurgence can be attributed to the fact that DeFi on the Tron blockchain recently attracted liquidity.

At the time of writing, the price of Tron is trading around $0.15. The short-term trend of this cryptocurrency is bullish, and the medium and long-term trend remains positive. These observations can be supported by the fact that the cryptocurrency is above its 50 and 200-day moving averages. Nevertheless, it is interesting to note that breaking through the last TRX peak seems to have triggered selling pressure, as evidenced by the ongoing correction in the crypto. Buyer support is therefore desirable to maintain the clearly visible bullish momentum in the Tron price as well as in its oscillators.

The current technical analysis was conducted in collaboration with Elie FT, an investor and passionate trader in the cryptocurrency market. Today, he is a trainer at Family Trading, a community of thousands of proprietary traders active since 2017. There you will find Lives, educational content, and support around financial markets in a professional and friendly atmosphere.

Focus on TRX/USDT derivatives

Although recently revised downward, Tron’s recent upward fluctuations have led to an increase in the open interest of TRX/USDT perpetual contracts. Coupled with a rising CVD, this suggests growing interest from speculators, mostly oriented towards buying. It is interesting to note that this phenomenon occurred after a period where these indicators showed moderate interest, accompanied by negative funding rates. This could explain the significant liquidations observed during the last Tron rise.

The liquidation heat map of TRX/USDT over three months shows that the crypto bounced off the liquidation zone located at $0.117. This triggered buying interest that propelled Tron to $0.16. Currently, notable liquidation zones are mostly below the current price of the crypto. The zone between $0.12 and $0.13 is initially notable, and lower, the zone between $0.11 and $0.116. Approaching these levels could trigger a massive order execution, increasing the risk of a period of heightened volatility for the crypto. These zones therefore represent a crucial point of interest for investors.

Hypotheses for Tron (TRX) Price

• If Tron’s price stays above $0.145, we could anticipate a break through $0.166. The next resistance to consider, if the upward movement continues, could be at $0.176, and beyond, we can note $0.184. At this point, that would represent an increase approaching 23%.

• If Tron’s price fails to stay above $0.145, we could envisage a return to the $0.137 levels. The next support to consider, if the downward movement continues, would be around $0.126. Lower still, we can note the support at $0.117. At this point, that would represent a drop of about 22%.

Conclusion

Tron has experienced a bullish recovery despite a lackluster cryptocurrency market, supported by the influx of liquidity into DeFi on its blockchain. The trend remains positive in the short, medium, and long term, although the emergence of selling pressure indicates the need for buyer support to maintain this momentum. Thus, it will be crucial to closely observe the price reaction to various key levels to confirm or invalidate the current hypotheses. It is also important to remain vigilant against potential “fake outs” and “squeezes” in each scenario. Finally, let’s remember that these analyses are based solely on technical criteria and that the price of cryptocurrencies can also change rapidly depending on other more fundamental factors.