TRON (TRX): Does May’s High Volatility Means Bulls in Control?

The Tron DAO spent millions of dollars in TRX and BTC acquisitions to support USDD, its algorithmic stablecoin. That resulted in a massive increase in the token’s market cap, with prices soaring in May.

Even as many assets in the altcoin space witnessed colossal selling, especially when USDT lost its dollar peg on May 12, TRX had buyers as its price climbed back to $0.07 from $0.067. Meanwhile, the charts have highlighted high volatility over the last two weeks. Nevertheless, long-term market players lack the bargain opportunity in their TRX.

TRON- 12Hr Timeframe

According to the FIB retracement zones, $0.065 and $0.071 remains the price levels bulls need to control in the coming weeks and days. The two regions represent the 78.6% and 61.8% retracement of TRX’s uptick to $0.0928 from $0.057 the previous month. Therefore, long-time-frame buyers might accumulate around this value area.

The $0.069 – $0.0715 range represented a resistance region early in the year. Meanwhile, TRON printed several higher lows from the late sessions of January. The alternative token conquered this resistance area in March 2022 and formed a higher high before flipping the high timeframes market structure to bullish from bearish.

Reasoning

The Awesome Oscillator (AO) plummeted beneath the zero-line, suggesting bearish pressure favoritism. Also, the Chaikin Money Flow indicated dominant sellers within the previous week as CMF dropped under the zero line.

Meanwhile, the A/D indicator printed several higher lows since January 2022, confirming buying volume outshining volume. That aligns with the optimistic market structure. On the other side, the DMI suggested that neither massive bullish nor bearish bias dominated, with the ADX, +DI, and –DI staying beneath the 20 levels.

Final Thought

Tron’s indicators disagreed with each other. Nevertheless, the last four months had prices indicating a bullish bias with massive price sways towards either direction within the past fourteen days.

Generally, TRX revisiting the $0.065 – $0.071 zone could be vital in long positions DCA, though market players might need wide stop-losses. Moreover, enthusiasts should manage position size and risk with extreme care.

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