Tron [TRX] buyers can deploy this strategy to sail through uncertain waters

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

TRX ditched its low volatility phase after the broader market pulldown Barring an exception, the crypto’s funding rates on most exchanges depicted a bearish edge

In challenging its compression phase within the $0.061-$0.064 range for over a month, Tron [TRX] witnessed a bearish volatile break over the last two days.

The $0.064-ceiling has constricted bullish endeavours for nearly 11 weeks. The buying ability to now protect the $0.053-support could support buyers in preventing an extended bloodbath.

At press time, TRX was trading at $0.05688, down by 8.98% in the last 24 hours.

Can the bulls stop the bleeding?

Source: TradingView, TRX/USDT

Since swooping to its yearly lows in June this year, the buyers re-entered the market to propel an uptrend. However, the five-month trendline support (white, dashed) (previous resistance) kept the buying rallies under its check.

After snapping this barrier, TRX traversed near the 20/50/200 EMA to reflect a rather momentous bullish edge.

While the bears forced a bearish crossover on the 20 EMA (red) with the 50 EMA (cyan) and 200 EMA (green), TRX corroborated with the market-wide selling inclinations.

Even so, a sustained rebound from its immediate trendline support can position the alt for a near-term upside. The first major resistance that the buyers must conquer is the $0.0585-level, followed by the near-term EMAs.

Any reversals from either of these barriers could expedite the bearish perception and thereby, inducing a pullback. In these circumstances, the trendline support could continue offering rebounding tendencies.

Also, TRX stood in a relatively low liquidity region. So, the altcoin would be more susceptible to volatile moves in the coming sessions.

The Relative Strength Index (RSI) marked a comeback from its oversold lows while eyeing to test its equilibrium. Its higher troughs bullishly diverged with the price action. However, the buyers could wait for a potential breach above the 50-mark to gauge the chances of a change in momentum.

Funding rates on FTX spiked

Source: Coinglass

Post the market-wide fallout, TRX’s funding rates in most of the exchanges turned negative after marking a steep downturn. However, its funding rate on FTX shot up over the past day by a significant margin.

Buyers should keep a close watch on the potential effects of this funding rate surge on TRX’s price in the coming days.

The targets would remain the same as discussed. Finally, investors/traders should consider Bitcoin’s movement and its impact on broader market perception to make a profitable move.

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