Tron Risks Drop to $0.2629 as Bearish Pressure Mounts

Tron faces mounting bearish pressure, with a potential drop to the 50-day EMA as market sentiment shifts. As the crypto market pulls back on Thursday, the bearish pressure over altcoins increases. Amid such pressure, Tron is down 1.65% on Friday, risking a potential drop to the 50-day EMA at $0.2629. Tron Price Analysis On the daily chart, the TRX price fails to sustain a bullish trend, despite a 2.57% surge on Thursday. Undermining the three consecutive bullish candles, TRX takes a bearish turn around with a near 2% intraday drop.

At present, TRX trades at a market price of $0.2775, retracing towards a crucial support trend line. Furthermore, it marks a bullish failure to extend the recent consolidation range breakout due to a broader market correction. The daily RSI line maintains a declining trend, while TRX fluctuates near the $0.28 resistance level. This highlights a hidden bearish divergence in comparison to the price trend, signaling a potential downfall. As per the price action analysis, the immediate support remains the 50-day EMA at $0.2628, near the upper boundary of the consolidation range. Notably, the 50-, 100-, and 200-day EMAs maintain a bullish alignment, increasing the number of dynamic supports to prolong the longer-term bullish trend. However, a potential closing above the $0.2806 mark could revert TRX towards the 50% Fibonacci level at $0.30. Derivatives Market Turns Bearish on Tron Amid declining TRX prices, sentiment in the derivatives market shifts in favor of Tron. The open interest is down 1.28%, reaching $264 million, indicating a decline in interest among derivative traders.  This aligns with the increased liquidations over the past 24 hours, with long liquidations rising above $908,000, while short liquidations spike beyond $607,000. With the larger buyout of bullish traders, the OI-weighted funding rate flips to a negative value of -0.0005%. 

Additionally, the long-to-short ratio indicates a sudden increase in short positions, resulting in a ratio of 0.8793. Hence, the derivatives traders anticipate a significant crash in TRX as the broader market turns volatile.