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TRON’s recent price rally has captured significant market attention, as the altcoin achieves a notable 20% increase this week.
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With key resistance at $0.20 and positive on-chain metrics, analysts are evaluating the sustainability of this bullish momentum.
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“If TRON can maintain its position above $0.1653, it appears set for potential further gains,” a COINOTAG analyst stated.
TRON achieves a 20% weekly surge, breaking significant resistance levels, with strong indicators supporting the bullish trend and potential for further growth.
What’s behind TRON’s price surge?
TRON has experienced a remarkable upward trajectory, effectively navigating an ascending channel. Recently, the asset broke through crucial resistance levels, with a notable rise to $0.1983, reflecting a robust bullish sentiment. However, this climb presents immediate resistance at the $0.20 mark. Should TRON advance past this price point, it sets its sights on $0.22 as the next target of interest.
Importantly, the $0.1653 support level has consistently served as a reliable foothold during previous minor pullbacks. In the event of a price correction, this level could act as a solid base for recovery. Monitoring the resistance at $0.20 is critical, and traders are keenly observing any moves above this threshold to gauge momentum towards new highs.
Technical indicators further paint a positive outlook; the 9-period Moving Average (MA) has surpassed the 21-period MA, indicating immediate bullish momentum. This MA crossover is traditionally recognized as a bullish signal, reinforcing the likelihood of ongoing price appreciation.
Additionally, the MACD indicator corroborates the bullish trend, with the MACD line (blue) positioned above the signal line (orange). This positioning typically signifies sustained buying pressure, suggesting the rally’s persistence.
Source: TradingView
On-chain signals: Is the network supporting the rally?
On-chain insights present a mixed yet intriguing picture. The Net Network Growth has witnessed a modest increase of 0.56%, indicative of stable network engagement. On the other hand, the In-The-Money ratio has dipped to -0.39%, suggesting some lingering bearish sentiments in the market.
Nevertheless, a promising signal emerges from large transaction activity, which has gone up by 1.02%. This rise typically signifies strong institutional interest and potential tailwinds for further price movements.
Source: IntoTheBlock
Total liquidations: What’s the impact?
The landscape of liquidations indicates a significant $35.68 million in total liquidations, primarily driven by short positions. This trend indicates that traders who were betting against TRON have found themselves liquidated, which in turn amplifies the current bullish momentum.
This forced liquidation has generated additional buying pressure, likely contributing to TRON’s upward trend.
Source: Coinglass
Can TRON sustain its bullish momentum?
After a 20% weekly surge, TRON showcases strong technical foundations, bolstered by the MA crossover and upward MACD readings. As TRON hovers near its key resistance level at $0.20, analysts believe a successful breakthrough could elevate the price towards $0.22.
The on-chain metrics reveal consistent network growth complemented by rising institutional interest, suggesting that as long as TRON maintains its position above $0.1653, it remains positioned for potential gains in the foreseeable future.
Conclusion
TRON’s recent bullish rally indicates a healthy market response fueled by positive technical indicators and strong network fundamentals. Maintaining above critical support levels will be vital for TRON to expand its upward trajectory in the coming days.
