- TRON's majestic rally in March almost hit $0.1, but selling pressure delayed the upswing.
- A spike in social volume followed by a dip is a bearish signal, denying TRX investor speculation.
- TRON's uptrend intact based on the MACD and the Parabolic SAR indicators.
TRON price action over the last seven days has been nothing but incredible. The token still leads recovery following the drab performance in the cryptocurrency market in March. According to Coingecko, TRX is up 26% in 24 hours and 63% in the last week. However, TRON is trading 2% lower on an hourly basis; thus, the outlook could be flipping bearish.
TRON Bulls Focus on Securing Higher Support
Following a significant move in price, TRON is trading at $0.088. Its upside seems to have been capped at $0.097. On the downside, short-term support has been embraced at $0.084, while bulls focus on lifting toward $0.1.
According to Santiment, TRON-related social mentions shot up massive amid the rally. The social volume metric "shows the number of mentions of the coin on 1000+ crypto social media channels, including Telegram groups, crypto subreddits, discord groups, private traders chats."
A spike in social volume is not a bullish signal because it leads to a pump-and-dump situation and the asset appreciably drops in price. Therefore, a correction is very likely for TRON in the coming sessions.
Tron Social Volume: Santiment
The bearish outlook is highlighted by the TD Sequential indicator on the three-day chart. The call to sell appeared in a green nine candlestick. This signal reveals that the uptrend is losing momentum, and sellers are preparing to take over. If validated, TRON will drop in one to four daily candlesticks.
Additionally, the Relative Strength Index (RSI) has hit overbought levels and is currently retreating. As sellers gain ground, the bull's grip appears to be loosening, thus validating the correction.
TRX/USD Daily Chart
Looking at the Other Side of the Picture
Short-term analysis based on the four-hour timeframe suggests that the uptrend is intact. For instance, the Parabolic SAR has a bullish impulse as shown by the parabolas (dots) beneath TRON.
TRX/USD Four-Hour Chart
Moreover, the Moving Average Convergence Divergence (MACD) indicator reinforces the bullish grip as it rises higher within the positive territory. The MACD line (blue) has left a massive gap from the signal line, showing that the slightest resistance path is north. Therefore, holding above $0.084 or $0.08 could pave the way for price action beyond $0.1.