Tron (TRX) Maintains $0.20 Support, but Resistance Could Stall Gains

Key Takeaways

• The IOMAP suggests strong resistance at $0.23 and $0.24, where millions of TRX holders are at a loss.
• The MACD is negative, with the 12 EMA crossing below the 26 EMA, signaling weak bullish momentum.
• TRX is near the 0.236 Fibonacci level, suggesting market uncertainty and potential price consolidation.
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Tron’s (TRX) price has stood above the $0.20 mark, showing resilience despite recent fluctuations. Due to this, TRX’s price is trading near $0.22.

However, the altcoin might find it challenging to sustain this uptrend for several reasons. With market sentiment mixed, will Tron price push higher, or is another pullback close?

TRX Resistance Clusters Grow

A key metric suggesting that TRX is unlikely to keep pushing higher is the In/Out of Money Around Price (IOMAP). The IOMAP shows relevant clusters that could serve as key support or resistance.

For example, if there is a large volume of tokens in the money at a certain price range, it indicates support. On the contrary, if the volume of tokens out of the money is higher, it indicates resistance.

In Tron’s case, the IOMAP shows that the major resistance lies between $0.23 and $0.24. At $0.23, 3.34 million Tron addresses hold 3.33 billion tokens in unrealized losses.

This is higher than the volume of money near Tron’s current price. Also, at $0.24, 4.72 million addresses hold 3.92 billion tokens at a loss.

Therefore, if TRX’s price tries to break above $0.23 or $0.24, some of these holders might prefer to sell, potentially driving the altcoin’s price downward.

Analysis from the technical perspective also seems to agree with this bias. Based on the daily chart, the Moving Average Convergence Divergence (MACD) has dropped to the negative region.

The MACD measures momentum and helps to identify trends using historical price movements. When the MACD reading is positive, the trend is bullish.

However, in this case, the reading in the red region with the 12 EMA (blue) crosses below the 26 EMA (orange). This crossover indicates a dearth of bullish momentum.

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If sustained, Tron’s price might keep trading below $0.24 in the short term.

TRX Price Rally Unlikely for Now

Regarding TRX price targets, the Fibonacci retracement indicator gives insights into where the altcoin might reach as of this writing, the token trades are near the 0.236 Fib level, a key support zone.

Amid the price action, the Chaikin Money Flow (CMF) is flirting with the zero signal line, indicating indecision. If this remains the same, then Tron’s price might continue consolidating.

However, a sustained break above $0.22 will likely change the trend. If that happens, TRX’s value might climb to $0.27 at the 0.382 Fib level.

Should buying pressure increase at that point, the price could rally to $0.33. However, if selling pressure intensifies, this might not be the case.

In that scenario, TRX’s value might crash to $0.15.