TRX price produced a massive 17% rally in three days, starting on July 21. But this impressive uptrend was undone, leading to a three-day return of just 3.27%. This sell-off was soon accompanied by more bears, which led to a total retracement of 18% in the last 17 days.
The formation of a bearish breaker zone, extending from $0.08041 to $0.07613, is a key area to watch. A breaker is essentially a failed demand or supply zone. For a bearish breaker, a key demand zone between two higher highs is breached to the downside.
TRX price is yet to breach the aforementioned three-day bearish breaker, but investors can jump on the short trade a little early. In that regard, a retest of the two-day breaker’s lower limit at $0.07858 could also be a good place to open short positions.
The ideal level for bears to book profits is the equal lows formed at $0.06375, resting below which are sell stops. This move would constitute a 16% plummet for TRX holders. While this crash might seem steep, investors can expect the altcoin to extend to $0.04630, which would constitute a total crash of nearly 40%.
On the other hand, if TRX price produces a higher high above $0.08571, it would create a higher high relative to the June 3 swing high. Such a move could attract sidelined investors and increase the overall buying pressure, triggering a rally.
In this situation, TRX price could rise roughly 50% and target the buy stops above the November 15 swing high at $0.1296.
