TRON (TRX), a prominent cryptocurrency in the digital asset market, is showing signs of moving towards a phase of potentially lower volatility following recent price fluctuations. The cryptocurrency experienced a 20% correction, shifting the dynamics of trader activity and market sentiment.
The Relative Strength Index (RSI), a crucial tool for evaluating whether an asset is overbought or oversold, has settled at a neutral level of 60 for TRX. This adjustment from previous highs of 84.6 to 60.8 indicates a balanced market sentiment, with an equal distribution of buying and selling pressures. Such an equilibrium suggests that TRON might be entering a consolidation phase, characterized by stable prices within a narrow trading range.
During this consolidation period, the market sentiment is expected to remain stable, possibly dominating TRON’s price action in the days to come. After a period of heightened activity, the number of traders holding TRX has seen a notable decrease. The decline from 7.52 million addresses on March 25 to 7.38 million by April 2 reflects a trend towards reduced price volatility, setting the stage for a more steady market phase.
However, TRX has recently gone through a technical event known as a death cross on April 2, where its short-term Exponential Moving Average (EMA) dipped below its long-term EMA. Traditionally viewed as a bearish signal, this occurrence followed a 22.34% price correction since the last death cross on March 5.
Given this backdrop, there is speculation on TRX’s future price movements. If the support level of $0.1145 does not hold, TRX could potentially fall towards $0.097, which would be its lowest point since December 2023. On the flip side, if market sentiment turns bullish, TRX could challenge the $0.14 resistance level, possibly triggering an uptrend.
This current phase in TRON’s market journey is pivotal. Investors and traders are closely monitoring these developments to gauge TRON’s next direction. Whether TRX will consolidate further or break out in either direction remains a focal point of interest in the cryptocurrency community.
