TRON Price Alert: TRX Braces for Correction as Bearish Pressure Mounts
TRX bulls hit the brakes as selling pressure builds—technical indicators flash warning signals across major exchanges.
Technical Breakdown
Key support levels crumble under sustained selling volume. The momentum shift catches leveraged longs off-guard, triggering cascade liquidations that accelerate the downward move.
Market Psychology Shift
Traders flip from greed to caution as bearish patterns emerge on higher timeframes. The fear of missing out gets replaced by the fear of losing out—classic crypto sentiment whiplash.
Broader Crypto Context
TRX mirrors weakness across altcoins as risk appetite shrinks. Another 'fundamental narrative' meets technical reality—because charts don't care about your white paper promises.
Watch these critical levels for potential bounce or breakdown scenarios. Remember: in crypto, corrections either shake out weak hands or become full-blown trend reversals. Nobody rings a bell at the top.
Tron’s on-chain and derivatives data hints at a correction
CryptoQuant’s Spot Taker CVD for TRX is negative, and its value has been steadily rising since mid-August. This metric measures the cumulative difference between market buy and sell volumes over three months. When the three-month CVD is positive, it suggests the Taker Buy Dominant Phase. A negative value, as it is currently happening, indicates the Taker Sell Dominant Phase.
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Tron Spot Taker CVD chart. Source: CryptoQuant
Coinglass’s funding rate data for TRX also support the bearish thesis. The metric has flipped to a negative rate on Tuesday and reads 0.0026%, indicating that shorts are paying longs. This scenario often signifies bearish sentiment in the market, suggesting potential downward pressure on TRX.
TRX OI-Weighted Funding Rate chart. Source: Coinglass
Tron Price Forecast: TRX breaks below key support
Tron price faced rejection around its yearly high of $0.370 on Saturday and declined nearly 7% until Monday, closing below the ascending trendline (drawn by connecting multiple lows since June 22). At the time of writing, it hovers at around $0.345.
If TRX faces resistance around its daily level at $0.345 and continues its correction, it could extend the decline toward its 50-day Exponential Moving Average (EMA) at $0.330.
The Relative Strength Index (RSI) on the daily chart is hovering around its neutral level of 50, indicating indecisiveness among traders. For the bearish momentum to be sustained, the RSI must MOVE below its neutral level. The Moving Average Convergence Divergence (MACD) showed a bearish crossover on Sunday, giving sell signals and suggesting a downward trend ahead.
TRX/USDT daily chart
However, if TRX recovers and closes above its daily resistance at $0.345 on a daily basis, it could extend the recovery toward its yearly high at $0.370.
