Key takeaways
Why are TRON prices falling?
Relative strength against Bitcoin has declined and increased selling pressure since Tuesday has pushed TRX prices below key $0.3 support.
What are the next expectations?
This could be due to weekend volatility and a hunt for liquidity, but the signs pointed to bearish control. Cautious traders can wait a few more days to assess TRX’s swing structure.
Just days after the October 10 stock market crash, AMBCrypto reported that TRON (TRX) had shown relative strength.
This resilience could fuel a TRX price rally, but over the past week, the bears have shown they have the upper hand.
Source: Coinalyse
It started with a rejection of local resistance at $0.325 on Tuesday, October 21. In the last 48 hours, the CVD spot has become negative. This shows strong selling pressure in the spot markets.
Funding rates also swung negatively and open interest continued to trend around the $230 million mark. Together, these signs point to bearish sentiment in the market. OI soared by $10 million in the last 24 hours, while prices fell.
This meant that speculative traders were confident in shorting TRX.
TRON retests local lows at $0.3
Source: CryptoQuant
The CVD, a spot taker, has been bearish since the end of August. This reflected a dominant phase of sales by taker. Taker orders are market orders, which vary the price and determine trends. The aggressive selling was reflected in the TRON price chart.
Source: TRX/USDT on TradingView
Since August, TRX has recorded lower highs on the daily time frame. This does not reflect a bear market, but rather a warning sign. Still, the continued defense of the $0.3 support level was seen as encouraging.
That could be about to change. Recent trading activity has pushed TRX below $0.3, and a daily close below this level would reverse the structure to the downside. The RSI is below the neutral value 50 and the moving averages are also signaling bearish momentum.
The $0.325 area, where recent selling pressure began, was a critical resistance level that needed to turn into support to maintain a bullish outlook. Instead, the price and on-sale volume (OBV) tend to decline.
Traders might consider waiting for a bearish retest of the $0.30 to $0.31 range before entering short positions. If confirmed, the next downside target could be around $0.264.
Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.
