Tron: Does the bullish reversal support an upward trend?

News Desk5
2 Min Read

Tron [TRX] maintained its uptrend by bouncing off a support level at $0.0857. However, the on-chart indicators suggested this might be a pullback before a break of the level and a continuation of the bearish retracement.

Meanwhile, Bitcoin [BTC] continued to move higher, hitting $28.2k before dropping to $27.9k, as of press time.

Bullish uptrend could be at risk

The 5% drop from the $0.09 price zone took TRX to the nearby support level at $0.0857. Despite the rebound off the level, the RSI (Relative Strength Index) and CMF (Chaikin Money Flow) pointed to growing selling pressure.

The RSI dropped swiftly below the neutral 50 to highlight a loss of bullish momentum. Similarly, the CMF flipped negative, revealing significant capital outflows.

These signs pointed to mounting selling pressure that could curtail the bullish advance.

If bears break below the $0.0857 support, sellers can target the higher low of $0.08 to $0.082. A successful defense of the support level by bulls would see a continuation of the bullish rally toward $0.092.

Negative funding rates could impact buyers

On-chain metrics from Coinalyze showed that the Funding Rate was largely negative at press time. Furthermore, the Open Interest (OI) declined despite the bounce from the support level. The OI dropped by close to 2 million over the past 24 hours.

This reflected the bearish leanings in the Futures market, which could lead to a significant price movement in favor of sellers in the short term.

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