TRON (TRX) Hits New High with Double-Top Pattern, Bearish Signals Emerge
- TRONs double-top pattern and high selling volume suggest a potential reversal as it trades near all-time highs.
- Spike in bearish volume on August 21 indicates mounting selling pressure, hinting at a possible price pullback.
- Lack of strong buying volume dampens bullish momentum, signaling caution for near-term Tron (TRX) traders.
TRON (TRX) made a new price high and has formed a technical formation known as a double-top. This pattern familiar in technical analysis is usually used to predict a trend reversal when an asset reaches its top. The double-top has drawn the focus of the traders since Tron is currently trading near the all-time high level.
In the recent X post, Alan Santana revealed that on August 21, TRON had a significant spike in the selling volume, which is one of the most important signs of market pressure. Such an increase in trading volume with the prevailing bearish pressure suggests that TRX may be on its way to a retracement.
Lack of Buyer Interest in Tron
Normally, a high price volume bearish indicates that the upward momentum may be losing steam and therefore a downward trend may be in the offing. While its timing is still unknown, experts believe this decline might be experienced in the coming weeks or months, and current trends appear to be trending downwards.
Compounding this fear is the absence of strong buying volume, which usually is a sign of buyers comfort and price rise. In a bullish market, a spike in green (buying) volume is usually seen before a long lasting increase which is not something that is reflected in TRXs trading activity at the moment.
Cautious Tron Market Outlook
The lack of significant buying interest add to this cautionary note and indicates that near term upside may be moderate. At the time of writing, TRX is trading at $0.1641, which is a 2.02% drop in the last 24 hours.
Some of the traders have also chosen the short position given the recent situations around TRX and the current price movements. The experts warn that such trades, especially those with leverage, are extremely risky and should be approached only by professionals. As with most things, leveraging could magnify losses, so this type of trading is not suitable for beginners.
Source: Chart by Alan Santana
In the last couple of days, TRXs price action and technical chart have suggested that the market is at the moment cautious. Given the current formation of the double-top and high selling volume to reverse the trend, those who are in the TRX trading should be cautious and watch for a change in trends. While waiting for further improvements in the situation the following factors suggest a pull back.
Read more: https://www.tronweekly.com/tron-trx-hits-new-high-with-double-top-pattern/
Text source: TronWeekly
