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Is TRON’s rebound perhaps just a flash in the pan?
Tron (TRX) bounced off the $0.0857 support and its price briefly moved higher. However, a closer look at the chart suggests that this could be just a brief pullback before a bigger correction and the possibility of a bearish pullback in the future remains.
Bulls can still hold the support level
The bulls have managed to hold the $0.0857 support level and curb the bearish retracement. Meanwhile, the price of Bitcoin (BTC) continues to climb higher and has reached $28,200. However, the price action of the TRX/USDT trading pair is not as optimistic as that of Bitcoin.
Bullish momentum starting to wane?
Although TRX/USDT has fallen from the $0.09 price zone to around $0.0857, the RSI (Relative Strength Index) and CMF (Chaikin Money Flow) have shown that selling pressure is increasing. The RSI has quickly fallen below the 50 neutral line, and the CMF has also turned negative, indicating that capital is flowing out in large quantities. These signs indicate that selling pressure may limit price gains, and bears may target lower levels of $0.08 to $0.082.
Do negative financing rates deter buyers?
Coinalyze's on-chain metrics show that funding rates are mostly negative. Despite TRX/USDT rebounding from support, open interest (OI) is still falling. OI has dropped by nearly 2 million in the past 24 hours, indicating that the futures market is leaning bearish. This could lead to a significant price movement in favor of sellers in the short term.
Overall, despite the rebound of TRX from the $0.0857 support, we cannot ignore the possibility of a bearish correction in the future. The bulls need to continue their efforts to keep the price above the support level, otherwise the bears may take advantage of the situation and launch a fierce attack.
However, while being cautiously optimistic, we also need to realize that TRON's rebound may be short-lived. From a technical perspective, although the bulls have successfully defended the support level of $0.0857, the RSI and CMF indicators have shown that selling pressure is increasing. The RSI quickly fell below the 50 neutral line, and the CMF also turned negative, indicating that capital is flowing out in large quantities.
These signs suggest that selling pressure could limit price gains and bears may target lower levels between $0.08 and $0.082.
Apart from this, Coinalyze’s on-chain metrics show that funding rates are mostly negative. Despite TRX/USDT rebounding from support, open interest (OI) is still falling. OI has dropped by nearly 2 million in the past 24 hours, indicating that the futures market is leaning bearish. This could lead to a significant price movement in favor of sellers in the short term.
In general, although TRX rebounded from the support level of $0.0857, we cannot ignore its possible bearish correction trend in the future. Bulls need to continue to work hard to keep the price above the support level, otherwise bears may take advantage of the situation to launch a fierce offensive. Therefore, although TRON's current rebound momentum is strong, we still need to be vigilant about market uncertainties and avoid blind optimism.
Perhaps TRON’s rebound is only temporary?
Tron (TRX) is on the rise after it rebounded from the $0.0857 support. However, a closer look at the chart suggests that this could be just a brief pullback before a bigger correction and the possibility of a bearish pullback in the future remains.
Although the bulls have managed to hold the $0.0857 support, the RSI (Relative Strength Index) and CMF (Chaikin Money Flow) have shown that selling pressure is increasing. The RSI has quickly fallen below the 50 neutral line, and the CMF has also turned negative, indicating that capital is flowing out in large quantities. These signs indicate that selling pressure may limit price gains, and the bears may target lower levels of $0.08 to $0.082.
Meanwhile, on-chain metrics from Coinalyze show that funding rates are mostly negative. Despite TRX/USDT bouncing off support, open interest (OI) continues to decline. The OI has dropped by nearly 2 million in the past 24 hours, indicating that the futures market is leaning bearish. This could lead to a significant price movement in favor of sellers in the short term.
In general, although TRX rebounded from the support level of $0.0857, we cannot ignore its possible bearish correction trend in the future. Bulls need to continue to work hard to keep the price above the support level, otherwise bears may take advantage of the situation to launch a fierce offensive. Therefore, although TRON's current rebound momentum is strong, we still need to be vigilant about market uncertainties and avoid blind optimism.
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