Identifying if Tron [TRX] is actually far from falling to its mid-week bottom again
Tron [TRX] has made its way into the market’s top-15 cryptos, with TRX ranked 13th on the charts. The altcoin managed to ward off market bears on 18 and 19 June, rallying by as much as 32% since its recent low on 15 June. In fact, this was despite the extended sell-off that took place on 18 and 19 June.
TRX had previously been trading within a wedge pattern, one underpinned by ascending support and descending resistance lines. However, it soon registered a strong bearish wave, one that pushed the token out of the wedge pattern.
The price bottomed out at $0.046 on 15 June, but it recorded a significant recovery rally too. The last time TRX traded near its latest low was in June 2021.
TRX was trading at $0.061, at press time. Simply put, it was up by 32% from 15 June’s lows.
Source: TradingView
A TRX price analysis also revealed that the sharp drop last week pushed the token’s RSI into oversold territory. However, significant accumulation facilitated a quick recovery, resulting in its uptick over the last few days.
Its MFI registered a slight hike, highlighting the buying pressure responsible for the uptick. The DMI indicator revealed that the bearish pressure tapered out quickly, thus paving the way for a smoother recovery.
On-chain metrics confirmed that TRX’s rally was backed by strong accumulation. The supply held by whales metric bottomed out at 44.45% on 16 June, but improved to 44.79% by 19 June.
This is a sign that the price dropped to a level where investors perceived it as deeply oversold. Whales accumulating is a healthy sign for TRX’s price action.
Source: Santiment
The sentiment shift in favor of the bulls was also reflected by the derivatives market. The Binance Funding Rate metric, for instance, dropped sharply to
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