TRON (TRX) buyers’ latest attempt to break through the critical resistance zone at the £0.060 level is met with strong selling pressure. A surge in buying pressure will be seen as the daily candle closes above the supply zone with help from the enhanced recovery momentum.
The price of TRON (TRX) jumped 38% in the first week of April, indicating a massive bullish reversal. The bullish surcharge rose to £0.085 before succumbing to further market selling pressure and the LUNA tragedy.
Within four days, the downturn shattered the bullish rebound and reached the 50-day EMA. TRX price has stabilised at this bullish support and is attempting to break through the £0.060 resistance zone.
The formation of an evening star on the 4-hour chart, on the other hand, results in a larger price rejection in the daily candle. This reduces the chances of a bullish breakout and increases the chances of a price trend shift to the side.
Furthermore, the downward trend in intraday trading volume indicates the departure of a large number of high-leveraged positions during the reversal. The bullish attempt theory loses points because the breakout candle must demonstrate significant volume support to keep the uptrend going.
From a bearish perspective, a drop below the 50-day EMA will release trapped momentum, resulting in a drop to £0.052.
As the 50-day EMA grows under bullish influence, the critical daily EMAs imply a bigger possibility of a golden crossover.
In terms of momentum indicators, the MACD and signal lines in the 4-hour chart both transcend the zero line with a bullish alignment.
In May, Tron (TRX) has remained the top gainer among major cryptocurrencies. The blockchain has come out to be one of the few that survived last week’s historic market crash. In the last 30 days, the TRX token has increased by 20%, while Bitcoin (BTC) has decreased by 19%.