Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Bulls curtailed the bearish retracement with a bounce off the support level.
- Negative funding rates could hand sellers a short-term advantage.
Tron [TRX] maintained its uptrend by bouncing off a support level at $0.0857. However, the on-chart indicators suggested this might be a pullback before a break of the level and a continuation of the bearish retracement.
How much are 1,10,100 TRXs worth today?
Meanwhile, Bitcoin [BTC] continued to move higher, hitting $28.2k before dropping to $27.9k, as of press time.
Bullish uptrend could be at risk
Source: TRX/USDT on Trading View
The 5% drop from the $0.09 price zone took TRX to the nearby support level at $0.0857. Despite the rebound off the level, the RSI (Relative Strength Index) and CMF (Chaikin Money Flow) pointed to growing selling pressure.
The RSI dropped swiftly below the neutral 50 to highlight a loss of bullish momentum. Similarly, the CMF flipped negative, revealing significant capital outflows.
These signs pointed to mounting selling pressure that could curtail the bullish advance.
If bears break below the $0.0857 support, sellers can target the higher low of $0.08 to $0.082. A successful defense of the support level by bulls would see a continuation of the bullish rally toward $0.092.
Negative funding rates could impact buyers
Source: Coinalyze
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On-chain metrics from Coinalyze showed that the Funding Rate was largely negative at press time. Furthermore, the Open Interest (OI) declined despite the bounce from the support level. The OI dropped by close to 2 million over the past 24 hours.
This reflected the bearish leanings in the Futures market, which could lead to a significant price movement in favor of sellers in the short term.