TRX price has smart money traps hidden in the technicals
- Tron hovers at $0.08 as breakout traders have been trapped.
- TRX price shows significant sell pressure on the volume indicator.
- Invalidation of the bearish thesis is a breach above $10.77
TRX price could be setting up a smart money trap as the volume and technicals do not homogeneously correlate.
TRX price looks too clean to be true
Tron has been gaining hype within the crypto market as the digital token has been one of the only cryptocurrencies to maintain its value throughout the last nine weeks. The technicals may hint at an upcoming sell-off despite the unquestionable bullish display.
TRX price currently trades at $0.08 as the price consolidates sideways following last week’s failed breakout. When analyzing the previous weekly candles, there is a severe amount of bearish pressure hovering above the $0.08 levels. Many traders may see the current price action coiling within a triangle-like formation. Unfortunately, the wedging pattern may be a smart money trap, as bullish triangle consolidations usually occur under low volume. Thus, the TRX price could be setting up for a liquidity hunt back to the $0.06 price levels in the coming days.
TRX/USDT 2-Week Chart
Invalidation of the bearish thesis is a breach above $0.1077. If the bulls breach this level, consider this thesis incorrect. The next likely target will be $0.12, resulting in a 46% increase from the current TRX price.
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
