• The TRX market structure recently broke down, resulting in bears taking control.
• The US CPI rose 4% in May year-on-year, which could result in the Federal Reserve pausing its rate hikes.
• Indicators on the daily timeframe suggest a strong downward trend is underway for TRON.
TRON Breaks Down from Bullish Structure
The recent break of the bullish market structure for TRX signified a bearish move was beginning to take place and bulls were losing their grip on the market. This was followed by a strong lower low, suggesting further downside could be seen. Investors were buoyed by news that the US CPI had risen 4% over May year-on-year, leading to speculation that the Federal Reserve may pause its rate hikes.
Indicators Point Towards Downtrend
The RSI indicator on the 1-day timeframe fell below neutral 50 to signal momentum had shifted towards the bears. In addition, capital flow out of the market was significant as indicated by CMF being below -0.05. Both -DI (red) and ADX (yellow) on Directional Movement Index were above 20, highlighting a strong downtrend in progress.
Bear Targeting $0.074-$0.078 Region?
TRX sellers managed to push prices beneath $0.0668 which confirmed bearish intent of traders and investors alike in this market segment . It remains to be seen if this move is only a sharp correction or really marks the beginning of a longer lasting downtrend on TRON’s chart. If prices revisit $0.074-$0.078 area it could provide an opportunity for short sellers to enter into positions..
Spot CVD & Open Interest Suggest Selling Pressure
Both spot CVD and open interest showed signs that selling pressure has been intense for some time now as both registered new highs with no corresponding buying volume spike being evident at all.. This suggests there are more moves down than up currently in play for TRON and investors should proceed with caution when considering any long positions right now..
In conclusion, indicators show a strong downtrend is underway for TRON as bears have taken control of this crypto asset’s chart which may continue until prices reach support at $0.074-$0 Spot CVD and Open Interest confirm this bearish sentiment as they register new highs with no corresponding buying pressure spike being present at all times.. Short sellers may be able to take advantage of any price revisits to these levels but investors should exercise caution when considering any long positions on TRON right now..