- The price of TRX has increased by more than 10% in the last 24 hours.
- Selling pressure could increase, which could halt the bullish rally in TRX.
While the best pieces like Bitcoin (BTC) face price correction, Tron (TRX) decoupled from the market. This is what happened when the token price jumped to double digits in the last 24 hours. Let’s take a look at TRX’s on-chain data to see if this trend will continue.
Bulls change gear
Tron bulls have been playing their best game over the past seven days, with the token’s price surging by 22%. In fact, in the past 24 hours alone, TRX’s price has increased by over 11%.
At the time of writing, TRX was trade at $0.16 with a market cap of over $13.8 billion, making it the 10th largest cryptocurrency. With this price increase, TRX price has reached a yearly high.
One of the main reasons behind this bullish rally was the launch of a memecoin project on Tron. reported the launch of SunPump.
According to Lookonchain, the Tron network has generated over 1.84 million TRX, or nearly $246,000, since SunPump launched in just a few days.
The price increase has also had a positive impact on the token’s social metrics. AMBCrypto’s analysis of Santiment data revealed that TRX’s weighted sentiment has increased significantly.
This indicates that the bullish sentiment around the token is dominant in the market. Moreover, its social volume has also increased, reflecting an increase in the token’s popularity in the crypto space.
Source: Santiment
TRX has one problem though
While this price increase seems optimistic, Tron has some hurdles to overcome. AMBCrypto’s analysis of IntoTheBlock data revealed that 100% of TRX investors were in profit.
This suggests that investors may choose to sell their holdings in order to take profits. If this happens, selling pressure will increase, ending the TRX rally.
Source: IntoTheBlock
AMBCrypto’s analysis of Coinglass data highlighted another bearish metric. TRX’s long-to-short ratio registered a decline. This indicated that there were more short positions in the market than long positions, which was bearish.
Source: Coinglass
The token’s Relative Strength Index (RSI) has entered the overbought zone, suggesting a possible increase in selling pressure. According to the Bollinger Bands, TRX price has touched the upper boundary of the indicator, which often leads to price corrections.
However, the Chaikin Money Flow (CMF) recorded an increase, suggesting continued price increases.
Source: TradingView
Realistic or not, here it is TRX Market Cap in BTC Terms
If the bullish trend continues, it won’t be surprising to see Tron reach $0.17 in the coming days. However, in case of a bearish recovery, TRX could drop to $0.13.
Source: Hyblock Capital
