• Tron [TRX] reclaimed the support zone of $0.076 – $0.078, which could present a long opportunity for buyers.
• Indicators like RSI and CMF showed buying pressure improved in the past few days and capital inflows into TRX rose steadily since mid-August.
• However, traders should track BTC price movement and TRX correlation to optimize returns on a long position.
Tron (TRX): Analysis of Risky Long Position
Overview
Tron [TRX] reclaims its previous support zone at $0.076 – $0.078, potentially offering buyers a risky long opportunity with key indicators showing strong buying pressure and capital inflows into TRX steady since mid-August.
RSI & CMF Indicate Buying Pressure
The Relative Strength Index (RSI) has been above the 50-mark since 22 August, showing that buying pressure has improved in the past few weeks while the Chaikin Money Flow (CMF) hasn’t gone below zero since early August, indicating strong capital inflows into TRX. The next crucial resistance level is set at $0.080 and if bulls continue on this course, further upswing could be imminent providing an entry point at the support zone ($0.076 – 078).
Risk Involved with Long Play
Despite TRX decoupling from Bitcoin’s price action last week, there are signs of re-coupling as evidenced by its positive correlation coefficient with BTC; therefore, any weakness in BTC could lead to TRX cracking its support zone invalidating the long position altogether; hence it is important to keep an eye out for BTC price movements along with monitoring TRX correlations to make sure that returns on long positions are maximized as much as possible.
CVD & OI Show Buyers Gaining Market Control
According to Coinalyze data, Cumulative Volume Delta (CVD) has had a positive slope since 18 August illustrating that buyers have been steadily gaining market control for the past few weeks while Open Interest rates also indicated increasing demand for TRX in derivatives segment – another indicator of bullish bias in play here.
Conclusion
Trading always involves some degree of risk however given bullish sentiment surrounding Tron’s performance it might be worth considering taking a chance on this risky long play but only after carefully tracking movements of both BTC price action as well as Tron’s correlations with Bitcoin to make sure that any potential losses are kept at minimum while maximizing returns from any potential gains made through this venture