- Large holders have thrown TRX on the market, forcing a fall that could extend more
- The global market structure seemed optimistic, because chain costs and other market feelings alluded to a positive activity
In the past 24 hours, TRX has experienced a major drop in the market, the one that led the assets to discuss lower and drop by 2.77% on graphics. This, despite the positive negotiation activity that she has seen in the past 3 weeks.
In fact, Ambcrypto’s analysis revealed that this market movement could be a double -meaning event. First of all, the asset will record a drop in prices, after which he will see an upward rally.
Here is what induced the fall and where the price could then go to the graphics.
Large merchants force the TRX to be inferior
TRX’s decline in the past 24 hours has been motivated by major market holders with a significant offer of the assets. This group, during this period, sold a cumulative total of more than 8.27 million TRX worth $ 2 million.
Source: intotheblock
However, the decision to sell is a deliberate effort to reduce the risk of registering losses after having won 9.84% in the past few weeks of detention. Especially with the active ingredients that translate into a key resistance level on the graph of Bollinger strips.
The Bollinger strips are a technical indicator composed of three levels – the upper band (resistance), the lower band (support) and the intermediary band, which interacts between a resistance and a level of support.
Trade to the higher resistance tends to lead to a drop in prices historically. And, this scenario is probably not different. However, there may be two levels of interest – the intermediate zone, which could potentially act as a level of support at $ 0.2398 (a cushion and a rebound level), then the lower band support of $ 0.2,246.
Source: tradingView
Ambcrypto used the average directional index (ADX) to determine whether the downward trend is strong or weak, which suggests that the latter is the case.
With the ADX trend upwards, this implied that the drop in prices in force will extend and that TRX will continue to drop to the graph. Due to the same thing, it could potentially go below the intermediate level strip.
The bullish environment remains intact
Despite the decline, however, the bullish environment on the market has remained intact. In fact, the world in and out of money around the price has maintained a positive level of feeling on the market.
At the time of writing this document, more than 84% of TRX holders were in profit. This tends to encourage continuing to maintain the outfit, even when the market drops.
Source: Artemis
In addition, the Blockchain Tron has generated more than $ 2.2 million in negotiation costs in the last 24 hours – the highest of all the other blockchains. This implied that there are more activity in the chain and more users – a positive net.
For the moment, the global market structure is optimistic. This means that the drop in price will probably be followed by a price rebound.
