- Buying pressure was lukewarm even as TRON tested the 2025 range high.
- Increased spot selling could be an early sign of a trend reversal.
TRON [TRX] managed to close a daily trading session above the $0.274 level twice in the past ten days. On both occasions, the token’s price saw a retracement to the $0.266 support level.
The bulls and bears were battling for control of the five-month range high at $0.274. So far, neither a clear breakout nor a decisive rejection has occurred.
The evidence at hand suggested that a bearish turn was more likely, especially if Bitcoin [BTC] falls below the $102k demand zone.
The TRX range low was at $0.22, and the mid-range level was at $0.2475. Toward the end of April, TRON had a similar consolidation phase around the mid-range level before a bullish breakout. The same mid-range level had held the bulls back in February as well.
The current consolidation around 0.27-$0.275 saw the OBV decline in recent weeks. Like the price, the OBV also lacked a trend recently.
A surge in buying pressure alongside a move beyond $0.274 would be a reliable sign of a strong breakout.
Data shows that TRON might struggle to breach the local highs
Source: CryptoQuant
The Spot Taker Trading Volume flipped bearishly to indicate a Taker Sell Dominant phase.
The metric measures the cumulative difference in spot taker buy and sell volumes over 90 days. It was positive and growing in the first half of May, but began to turn around over the past ten days.
Source: Coinglass
An examination of the 1-month liquidation heatmap showed that TRX was likely to fall toward $0.255 or lower, to $0.24. There was a cluster of liquidity around the local lows made in May that could attract prices lower in search of liquidity.
The $0.282 level also had a high concentration of short liquidations, which could be hunted in the coming days. Traders should be wary of going long at $0.28, and going short around $0.255.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
