Tron [TRX] Retracement: Bulls Exhausted or Bears at the Gates?

• Tron [TRX] experienced a deep retracement at the $0.0850 – $0.0940 price level, resulting in a sharp drop in Open Interest in the futures market.
• Bitcoin’s bearish outlook has influenced the crypto market, with Tron suffering from its effects on its advance to a critical price level.
• A break below the $0.0787 support level could flip TRX bearish on higher timeframes, while a successful defense of this level by bulls will sustain the uptrend for TRX.

Tron [TRX] Experiences Retracement

Tron was enjoying the highs of its latest bullish strides until it was met with a critical roadblock at the $0.0850 – $0.0940 price level. This highlighted selling pressure still present at this price zone and saw TRX take a 15% dip between 22 July to 24 July, hovering just above an important support level as of press time.

Bitcoin’s Bearish Outlook Reverberates Across Crypto Market

Bitcoin’s bearish outlook has reverberated across the crypto market and caught up with Tron on its advance to a critical price level despite its upward trend beforehand. Should bears extend their selling pressure, they may break through confluence of support levels and push TRX lower towards take profit levels at $0.0700 – $0.0711, flipping it bearish on higher timeframes as well.

Technical Indicators Point To Waning Demand

The Relative Strength Index (RSI) dipped below neutral-50 and Chaikin Money Flow (CMF) entered negative territory, both pointing to waning demand and strong capital outflows following TRX’s retracement from its peak resistance of 2022 high ($0.0944). Furthermore, Open Interest (OI) dropped from 95 million to 65 million over two days – showing weakening long positions as traders took their profits off the table when faced with rising sell-side pressure..

Bulls Look To Mount Fight Back Against Bears

As mentioned before, should bulls be able to successfully defend against bears‘ onslaught at key support levels then they will be able to sustain Tron’s current uptrend going forward into 2023-24; however if bears do break through these levels then they may take control of market sentiment from now on and send prices lower over time as traders look for opportunities elsewhere in other markets or assets classes instead..

Conclusion

All in all, whether Tron can bounce back depends on how well bulls are able to defend against bears‘ selling pressure around key support levels; if bulls cannot hold back bears‘ advance then we may see TRX enter into bearish territory soon after much hype surrounding its recent bullish strides leading up till now..