TRON Crypto Recovers 10% But Faces $0.25 Resistance

TRON crypto, denoted by the ticker TRX, has been experiencing a period of price volatility, with its value fluctuating around the $0.25 mark. At the time of reporting, TRX was trading at $0.232, having recovered from a weekend drop with a double-digit price gain. However, this recovery has not been sufficient to push the cryptocurrency above the local resistance level of $0.25. The overlap of liquidation levels and this resistance level suggests a potential bearish reversal for TRX, as traders may be inclined to sell if the price retests the overhead resistance.

Technical analysis indicates that TRON has been trading within a range of $0.2745 to $0.22, with $0.248 serving as the mid-range level. This mid-range level has acted as strong resistance over the past six weeks, with prices repeatedly failing to break through and subsequently dropping to the range low. On March 16, TRX dipped below the range low, but bulls initiated a recovery, pushing the price up by over 10% in the past three days. However, the On-Balance Volume (OBV) has not surpassed a local high, indicating a lack of significant bullish dominance. The Relative Strength Index (RSI) was at 50 at the time of writing, suggesting a potential momentum shift. However, similar shifts have been observed in the past two months without leading to a breakout beyond the mid-range level.

The 1-month liquidation heatmap outlined the $0.25 region as a magnetic zone. The recent price bounce meant that a move higher to the mid-range and the liquidation levels lined up well. The cluster of liquidity just above the mid-range level could attract TRON higher before a bearish reversal. Hence, traders can expect TRON to brush the $0.25 level before a bearish reversal. Traders can use this retest to sell or go short, but it was a bit late to try to buy TRON hoping for more gains.

Bitcoin, the leading cryptocurrency, has also been hovering around the $83k mark and showed little short-term bullish intent, which could be affecting TRON’s market outlook. The lack of strong momentum and buying pressure in the broader cryptocurrency market may be contributing to TRON’s inability to push past the $0.25 resistance level. Traders and investors will be closely watching TRON’s price action in the coming days to see if it can overcome this resistance and continue its upward trajectory.