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- TRX is seeing an increase in social media activity and trading volume but is failing to rally.
- The double bottom pattern shows that there is still some fundamental strength among the bulls.
Despite the recent upward momentum, You see [TRX] It struggled to maintain its upward trajectory, faltering in the face of increased activity on social media. What gives?
TRX’s social influence is weak
As the chart below shows, TRX has seen a notable increase in both social volume and sentiment. However, it is still unable to maintain the upward momentum, as evidenced by its price’s inability to rise in time.
The price has shown significant fluctuations, with rapid rises and falls, indicating a highly volatile market environment.
The bearish flags clearly show that despite recovery attempts by weak bulls, there is a much stronger bearish sentiment among traders.
Source: Trading View
The bulls are losing the battle
The double top, a notorious bearish signal, has been identified 52 times with 38 confirmations and 24 revocations over the past five days, while double bottoms have been seen 50 times.
Source: Trading View
This further confirms the strength of bears. It is worth noting that the risk/reward ratios for double bottoms appear generally favorable, indicating more consistent gains versus losses compared to double tops, including some very unfavorable ratios.
Therefore, the bulls may not be as weak as they seem.
TRX experienced a series of oscillations between $0.1145 and $0.1385, showing a consolidation pattern.
The price’s frequent crossover above and below the moving averages (MA50 and EMA144) indicates a lack of strong directional momentum.
Source: Trading View
The MACD line oscillates around the signal line and the zero line, which often indicates a market without strong upward or downward momentum.
Surprisingly, the derivatives market saw a significant increase in trading volume by +136.71%, indicating increased interest from traders.
Source: Coinglas
Realistic or not, here it is TRX market cap in BTCconditions
Open interest increased by 10%. This is generally seen as a sign of new money entering the market.
It seems that the TRX bulls need a lot more than they are getting in order to successfully beat the bears.
