The flagship cryptocurrency, Bitcoin (BTC), has experienced gains over the past two days, positively impacting the broader market and altcoins. Tron (TRX) is one such altcoin, showing significant gains over the last week.
How Are Bulls Influencing TRON?
TRX bulls have been actively working to prevent the price from falling below the $0.11 support level since its drop from $0.12 in May. According to cryptocurrency analytics firm Santiment, Tron’s social dominance—a key metric that measures the share of discussions about a token in crypto media—is trending positively. This metric’s increase generally signals upward momentum for the altcoin.
As social dominance rises, demand for TRX appears to be growing, reflected in its price increase. However, it’s crucial to assess TRX’s price potential through technical analysis. The daily chart reveals that TRX faced selling pressure from mid-May to May 28, with its price declining from $0.13 to $0.11. Despite bears’ efforts to push the price lower, bulls’ resilience and reduced selling activity might neutralize these attempts.
What Is the Resistance Level in TRX?
Since May 28, TRX has started an upward trend, forming an ascending channel until June 11. The trend line suggests support with a higher low point, while the upper trend line indicates resistance with a higher peak. The MACD, a technical indicator for assessing momentum, shows positive values, suggesting an upward trend. Conversely, negative values would indicate a downward trend.
Key Takeaways for Investors
For investors looking to capitalize on TRX’s current trend, consider the following points:
- Monitor TRX’s social dominance as an indicator of market sentiment.
- Pay attention to the support and resistance levels identified in the ascending channel.
- Utilize the MACD indicator to gauge the momentum of TRX’s price movement.
These insights can help investors make informed decisions regarding TRX trades.
In conclusion, TRX appears to be on an upward trajectory, bolstered by strong support from bulls and a favorable technical outlook. Investors should keep an eye on key metrics and resistance levels to navigate the market effectively.