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TRON's Price Drops 5% Amid Weak Demand, Bullish Momentum Fades

Coin WorldMonday, May 5, 2025 4:06 am ET

1min read

TRON's price experienced a notable 5% dip, attributed to weak demand in the market. This decline was anticipated by liquidation levels, which indicated a potential price drop within the coming days. Despite TRON's bullish market structure, recent trends have shown a lack of buying pressure, evident from the slow downtrend in the On-Balance Volume (OBV) since mid-April. This suggests that the bulls' efforts have been insufficient to sustain a price rally, despite the daily Relative Strength Index (RSI) remaining above the neutral 50 mark since mid-March.

The price of tron [TRX] challenged the mid-range resistance at $0.248, a level that has been tested by bulls for three weeks without success. The inability to flip this level to support indicates a lack of strong demand, which is further corroborated by the dwindling trading volume over the past three weeks. The OBV's trend shows that sellers have been dominant, cautioning traders around the $0.252 and $0.255 local resistance levels.

The liquidation map revealed high leverage liquidation levels close to the current price, with the $0.236-$0.238 zone to the south and the $0.256-$0.258 zone to the north being critical levels to watch. The latter aligns with one of the local resistances previously highlighted, while the $0.236 level is just below the local support levels established over the past three weeks. Given the dwindling trading volume, traders can expect a short-term range formation between these levels.

The road to $0.236 has a higher cumulative liquidation leverage, suggesting that TRON’s price may be more strongly attracted south in the coming days. A test of $0.236 could offer a buying opportunity, but caution is warranted due to Bitcoin's recent bearish momentum. The overall sentiment indicates that without strong demand, the bullish momentum observed in the RSI may not be sufficient to drive a sustained price rally. Traders should remain vigilant and consider the potential for further price corrections in the near term.

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