Can TRX Breach All-time highs Again?

While trading rather sideways in June, albeit more on the bullish side, TRX remains to be a powerhouse in the crypto space and the cryptocurrency is enjoying robust trading volume, which may suggest that a price breakout beyond its all-time highs is possible.

The cryptocurrency market has recently undergone a mild correction; however, some cryptocurrencies, like TRX, are bucking the trend and presenting compelling buying opportunities.

Daily time frame analysis

TRXUSDT - 1 Day Time Frame

From a technical standpoint, there are specific parameters that guide the execution of buy orders. Notably, the entry criteria are set below the 0.5 Fibonacci level, which lies within the Premium & Discount zones, specifically in the Discount zone.

This positioning suggests that any purchase made would be at a comparatively low price.

Furthermore, a critical support zone is highlighted by the Fair Value Gap (FVG), which delineates the most advantageous area for executing the mentioned buy orders. Traders capitalizing on this zone should closely monitor subsequent price movements.

From a money management perspective, it is crucial that the price does not close below the FVG. Should this occur, it would be prudent to reduce the position, as the likelihood of the trade’s success diminishes.

Another positive indicator supporting this trade is the presence of an Order Block (OB), which aligns with the market’s order flow. A dip to this block would be acceptable as long as the support zone remains intact.

Take profit & stop loss

Successful trading requires a sophisticated system, and like any trading strategy, both Stop Loss (SL) and Take Profit (TP) orders must be clearly defined. The SL should be positioned below the internal low to provide sufficient buffer for the support zone and the Order Block.

Conversely, the TP should be set at the Buy-Side Liquidity (BSL) level, where there is a high likelihood of encountering significant market orders. This level is critical as it represents the point where orders from high-volume traders are likely to be matched.