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- 1 The TRON price noted a change in the direction and dropped over 10% this week.
- 2 Investors are making profit booking at highs, leading to a retracement.
The TRON price started draining gains and is witnessing a retracement move on the charts. Amidst the uptrend and the bullishness, the TRX price noted profit booking and has slipped below the 50-day EMA mark. In the previous session, crypto leaders, BTC and ETH, and most altcoins revealed a sudden drop. However, the trend is intact, and these dips must be considered a buying opportunity.
At press time, the TRON coin (TRX) price was trading at $0.1258 with an intraday drop of 3.33%, indicating profit booking in the overnight session. It has a monthly return ratio of 1.80% and 94.00% on a yearly basis. The pair of TRX/BTC is at 0.00000187 BTC, and the market cap is $11.26 Billion. Analysts are neutral and suggest the TRX coin price may face further decline and will retest the round mark of $0.1000 soon.
TRON Indicates a Reversal; Is It a Trap or a Price Correction?
The Tron coin (TRX) witnessed a decline with a drop in trading volume, signifying the profit booking after a massive rally from the bottom. However, this retracement or a price-wise correction is healthy for the coin to continue its bullishness. Amidst the retracement, the TRX price dropped only by 10%, which indicates a neutral sign. The trading volume declined by 20% to $316.36 this week, whereas the intraday volume rose by 56% to $716.56 Million.
Price Volatility Increased; Sentiments Remains Neutral
Following the retracement, the investors book their profits, whereas some traders make fresh positions. This activity led to an increase in volatility, and the curve rose by 7% to 0.020. However, the total weighted sentiment remains neutral, and the curve stays near the midline of -0.157.
TRX Witnessed A Drop in Social Volume and Dominance
The above data shows a decline in social dominance that replicates low activity on social platforms. The dominance curve fell 20% this week to 0.123%, whereas the social volume data declined by 80% to 35.
What Does Derivative Segment Indicate About TRX?
The above data indicates a price drop and suggests a short buildup activity, replicating that sellers are creating fresh positions and showing dominance. The change in the open interest was noted as a surge of over 3%. Following the price drop, the market cap declined to $11.23 Billion. The Relative Strength Index (RSI) curve slips to the oversold region, suggesting that a possible trend reversal may be seen shortly.
The total supply of the TRON coin is $89.45 Billion, whereas the volume-to-market cap ratio is 0.0637.
Summary
The TRON coin (TRX) price reveals profit booking from the highs, slipping below the 50-day EMA mark in the previous session. The sudden change in the price led to investors in trouble, and volatility was noted on the charts.
Technical Levels
Support Levels: $0.1200 and $0.1160
Resistance Levels: $0.1330 and $0.1450
Disclaimer
The views and opinions stated by the author or any other person named in this article are for informational purposes only and do not constitute financial, investment, or other advice.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
