TradeCityPro | TRX : An Intense and Unexpected Pump
2024-12-04

👋 Welcome to TradeCity Pro! 
In today’s analysis, I’ll review TRX, which recently experienced a sharp and unexpected pump. Many traders in various communities seem to have succumbed to FOMO following yesterday’s surge. This analysis will focus on managing profits and navigating a coin that has already pumped significantly.

 📅 Weekly Timeframe: Sharp Rally 
In the weekly timeframe, there’s a well-established, long-term trendline that has repeatedly supported the price. I’ve often emphasized that if you’re holding TRX, it’s worth holding as long as the price stays above this trendline.

📊 The trading volume has consistently increased during the price’s rise from $0.0493 to $0.1446. After hitting this resistance, the market consolidated between $0.1084 and $0.1446 for a while.

🚀 Once the critical resistance at $0.1446 was broken, TRX achieved a new all-time high. After surpassing $0.1675, the price saw a massive pump. The RSI climbed past 80.97 and now stands at an extraordinary 91.72, indicating extremely overbought conditions. At such high RSI levels, I typically wait for a correction before making any moves.

 ✅ Profit-Taking Strategy 
For those who have been holding TRX, consider taking some profits now. With the RSI at such elevated levels and the price nearing the 1.272 Fibonacci level, the likelihood of a correction is significant. I personally take profits at this stage and recommend you do the same. However, do not sell all your holdings, as there’s always the potential for further upward movement.

📈 If the rally continues, the next target would be the 1.618 Fibonacci level, often considered a critical resistance. Nevertheless, taking profits now is wise, especially since many holders are likely over 100% in profit, providing an excellent opportunity to withdraw your initial investment.

 🛒 Advice for New Investors 
If you don’t already hold TRX, do not buy at this stage. This is not an optimal entry point. Current long-term holders are likely to be taking profits, so it wouldn’t be prudent to buy while they are exiting. Patience is key; wait for a correction or a better setup before considering an entry.

 📝 Final Thoughts

This analysis reflects our opinions and is not financial advice. 

Share your thoughts in the comments, and don’t forget to share this analysis with your friends! ❤️