• TRON [TRX] continued to trade in a price consolidation range amidst a scheduled FOMC meeting on 31 January.
• The Relative Strength Index (RSI) and the On Balance Volume (OBV) exhibited fluctuations on the three-hour chart.
• Bitcoin [BTC] broke below the $23.5k level, accelerating its short-term price correction.
TRON [TRX] continued to trade in a price consolidation range as the market awaited a scheduled FOMC meeting on 31 January. At press time, TRX was valued at $0.06235. The asset witnessed a sharp drop after hitting a key supply zone. To assess the current market trend and determine the direction of TRX’s price action, traders should pay close attention to the behaviour of the Relative Strength Index (RSI) and the On Balance Volume (OBV), which were exhibiting fluctuations on the three-hour chart.
In addition, Bitcoin [BTC] had broken below the $23.5k level, accelerating its short-term price correction. The downward trend of BTC had also caused TRX’s demand to decrease slightly, but remain positive. Currently, the $0.06178 – $0.06368 range was seen as a supply and demand zone for TRX. A breach of this range could invalidate any long or short positions taken by traders.
In the event of a breach to the upside, TRX could retest the $0.06525 resistance level. However, any downward pressure could see the asset settling at the $0.06020 demand zone. Furthermore, Santiment’s data suggested that TRX’s investors were bearish on the asset.
Overall, the market seemed cautious amidst the upcoming FOMC meeting, which could further constrict the price action within this consolidation range. Therefore, traders should observe the behaviour of the indicators closely and take positions accordingly.