- TRX was testing a key support level of $0.135 at press time.
- Analysts are predicting a yearly high with a 100% increase to $0.27.
While Tron has seen major gains, its native token, TRX, has faced a strong bear market. TRX has seen gains of 3.74% on the weekly charts after the market rebounded in recent weeks.
After forming a bullish flag earlier this month, the altcoin has made considerable upward gains.
The recent development and popularity of the Tron network has led analysts to anticipate a major breakthrough for TRX. For example, Whales Crypto Trading shared his analysis on X (formerly Twitter), noting that,
“Tron is bouncing off the lower boundary of a weekly ascending channel. This bullish structure projects a 100-150% upward move.”
Source: X
According to analysts, the altcoin will see gains of over 100% after breaking the current resistance zone reaching $0.27, making ATH.
Dominant feeling
According to AMBCrypto’s analysis on Market Prophit, TRX was enjoying a positive market sentiment of 0.1127 at press time. Meanwhile, the buzz score was 1.028.
Source: Prophet Market
The market’s favor for the altcoin stems from recent data, in which Token Terminal showed that the Tron network has overtaken Ethereum (ETH), alongside increased adoption of Tron by stablecoins such as Tether (USDT).
What the price charts suggest
At the time of writing, TRX was trading at $0.1336 after a 1.56% decline on the daily charts. Similarly, the altcoin has seen a 32.1% drop in trading volume over the past 24 hours.
However, AMBCrypto’s analysis showed that recent gains outweigh losses, with the market remaining bullish at press time.
Source: TradingView
Chaikin Money Flow (CMF), which was positive at 0.11 at press time, suggests increased buying pressure. This showed that TRX was enjoying increased buying interest, with prices closing near highs.
Similarly, the altcoin’s Directional Movement Index (DMI) showed a strong upward move, sitting at 23.9 at press time, above the negative index of 17.9, indicating that the current trend was sustained.
Source: IntoTheBlock
Looking further, AMBCrypto’s analysis on IntoTheBlock showed that the market was benefiting from the favor of large holders. The net flow of large altcoin holders was positive at 69.91 mtrx at the time of publication.
This shows a larger inflow among whales. Over the last 24 hours, the inflow from large holders was 144.22 mtrx, while the outflow was lower at 74.3 million TRX.
This suggests that whales were confident about the altcoin’s prospects.
Source: Coinglass
Finally, Coinglass data showed that liquidation of long positions has decreased over the past seven days.
Long position liquidation declined from $54,000 to $22,000, suggesting that long position holders were willing to pay premiums to hold their positions.
Can the TRX rally?
If current market conditions continue, TRX is positioned for an upward move.
Realistic or not, here is the market cap of TRX in terms of BTC
Therefore, if the daily candlestick closes above $0.135 and reclaims the monthly high at $0.139, TRX will break out from the yearly high of $0.145 and reach $0.155.
However, a pullback to this level would send the altcoin down to $0.128.
