Bitcoin’s price has once again dropped to the $60,000 level, failing to sustain its recent test at $64,000. The altcoin market is experiencing a tough day, with investors reducing their risks in anticipation of a potential retest of the $58,500 support level. The past few weeks have seen intensified selling pressure, leading to losses exceeding 50%. However, not all altcoins are facing the same struggle.
Tron (TRX) Shows Upward Movement
In the last 30 days, the price of TRX Coin has risen by approximately 15%. As the 11th largest cryptocurrency by market value, Tron (TRX) has reached levels not seen since March. After hitting its lowest price of the year on May 29, the altcoin has surged nearly 10% from that point.
The recovery in the Relative Strength Index (RSI) indicates increased investor demand, which is driving up the price. At the time of writing, the RSI value stood around 74, a level of strong demand last observed on March 2. Typically, an RSI nearing 0 signals selling pressure, while an RSI approaching 100 indicates buying pressure. Currently, there are clear signs of overbought conditions.
What Does TRX Coin’s Future Hold?
The RSI in the overbought territory could hint at a price correction, especially with Bitcoin showing weakness. The recent rally, supported by demand in the derivative markets, may see some easing soon. While open positions in futures markets are declining for many altcoins, TRX’s positions have increased by nearly 40% last month, reaching $84 million, the highest since October 2023.
Key Takeaways for Investors
- TRX Coin has shown significant recovery despite the overall altcoin market downturn.
- The Relative Strength Index (RSI) indicates strong buying demand, suggesting potential price corrections.
- TRX’s futures market open positions have surged, indicating increased investor interest.
On the technical front, TRX Coin has formed a rising channel. The price has consistently increased, contributing to the formation of this pattern. The upper boundary of the channel acts as resistance, and a breakout at this point could lead to more significant gains. Resistance is currently at $0.13, while the channel’s support line is at $0.11.
If TRX can close above $0.13 soon, we might witness an acceleration in the rally. Conversely, if Bitcoin’s selling continues, the support at $0.11 is likely to slow down the selling pressure.
While the RSI shows a slight dip signal and Bitcoin’s current state isn’t conducive for a rally, the midline and below could be tested initially. However, if Bitcoin recovers and the RSI stays close to the 70 region, the resistance might get tested without an increase in selling pressure.