TRX has been resilient to the recent crash but a new support test is likely. Investors may want to wait for a more attractive price level.
Bitcoin’s recent surge has aided in recovering the losses that many altcoins faced in the first half of June. Tron, in particular, came close to reclaiming $0.08580, its highest level in June. Nevertheless, the altcoin must overcome a barrier in the form of a sell order block, located below June’s peak, to advance further.
A recent report indicated that Tron has surpassed Ethereum in terms of locked total value. However, TRX’s price movement has been heavily influenced by market sensitivity, particularly the movement of Bitcoin’s price.
TRX Price Outlook
At the moment, TRX’s price has recovered to around $0.07858 after encountering resistance at the sell order block between $0.0826 and $0.0858 on the 12-hour chart. Bulls are aiming for a breakthrough of the downward OB, but if the barrier proves difficult to overcome, they might face setbacks.
A potential decline could lead to breaking the $0.0786 support, which has been a significant level of support since mid-June. In such a scenario, a recovery in the consolidation area could provide an opportunity for bulls to re-enter long positions, targeting the downward OB.
A breach of the rising trend line support would nullify the bullish outlook, possibly leading to a retest of $0.7500. On the other hand, TRX currently shows a strong uptrend, with the Average Directional Index above 20, and the Chaikin Money Flow above zero, indicating robust momentum and capital inflow.
Summary: Short-term Entry Opportunity and Crypto Market Outlook
If the specified level is not surpassed soon, the support zone offers a favorable entry opportunity. Next week, the crypto market is not anticipated to be significantly impacted on the macro front. Price movements will likely be influenced by internal dynamics, with potential fluctuations ahead of the Fed meeting.
Historically, investors have experienced both declines and increases in the 7-10 days preceding Fed meetings, with losses escalating as the meeting date approaches. As interest rate hikes are considered in this meeting, cautious investors may trigger risk reduction or stop-loss selling, leading to potential bottom tests.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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