The relative strength against Bitcoin has fallen away, and increased selling pressure since Tuesday has depressed TRX prices below the key $0.3 support.
This could be weekend volatility and a liquidity hunt, but the signs pointed toward bearish control. Cautious traders can wait for a few more days to assess TRX’s swing structure.
Just a few days after the market crash on the 10th of October, AMBCrypto reported that TRON [TRX] showed relative strength.
This resilience could fuel a TRX price recovery, but over the past week, the bears showed they have the upper hand.
It started with a rejection at the $0.325 local resistance on Tuesday, the 21st of October. Over the past 48 hours, the spot CVD has turned negative. This showed strong selling pressure in the spot markets.
The funding rates also flipped negatively, and the Open Interest continued to move around the $230 million mark. Together, these signs showed bearish sentiment in the market. The OI climbed higher in the past 24 hours by $10 million, while prices fell.
This meant speculative traders were confident shorting TRX.
The spot taker CVD has been bearish since late August. It reflected a taker sell dominant phase. The taker orders are market orders, which are the ones that move the price and set trends. The aggressive selling was reflected in the TRON price chart.
Since August, TRX has registered lower highs on the daily timeframe. This was not reflective of a bearish market, but more of a warning sign. Yet, the continued defense of the $0.3 support level was seen as encouraging.
That might be about to change. The recent trading activity has pushed TRX below $0.3, and a daily session close below this level would flip the structure bearishly. The RSI has been below neutral 50, and the moving averages also signaled bearish momentum.
The $0.325 zone, where recent selling pressure began, was a critical resistance level that needed to flip into support to sustain a bullish outlook. Instead, both price and On-Balance Volume (OBV) are trending lower.
Traders may consider waiting for a bearish retest of the $0.30-$0.31 range before entering short positions. If confirmed, the next downside target could be around $0.264.
