Except for a few price spikes brought on by strong social sentiment, Tron (TRX) has been in a range for much of September and into October. Justin Sun’s mention in the news gave TRX fresh bullish momentum.
TRX price seems to have improved on the short-term charts. The price surged by 4.06% during the last 24 hours on rumours that TRON founder Justin Sun was buying Huobi Global.
TRX was trading at £0.059, with a 24-hour volume of £425 million representing a gain of 107.38% from the last day at press time. A resurgence in retail interest in the token was evident from the sheer increase in trading volumes over the past day and the favourable price momentum.
However, the price of TRX was still down 77.34% from its peak of £0.26 reached in March 2018. The altcoin tested the £0.052 low just ten days ago after it fell below the £0.058 mark at August-end.
Despite a price rise of 9.59% from its lows of £0.052, bulls didn’t seem to be able to push TRX beyond the crucial £0.058 resistance level.
While on-chain indicators showed TRX in a weak position, a visible increase in daily RSI meant that buyers were pressing in as price gained momentum and retail volumes went up. This was a promising short-term sign.
The £0.058 resistance would be a key point in TRX’s trajectory going forward. Retail push can support its uptrend above this level in the short term, but with poor supply-demand metrics, a recovery above the next significant resistance at £0.063 appears to be doubtful.
On-chain metrics showed that development activity had reached record lows and weighted social sentiment dropped.
However, an increase in the funding rate indicated a growing bullish sentiment in the futures market for TRX.
While the bullish momentum can send the coin above £0.058 levels, maintaining the same could be a huge challenge.
The price could rise above the upper resistance at £0.063 if the aforementioned long-term bearish thesis is proven false.