Can TRON reclaim $0.33 after its $234M hack fueled buying spree?
The TRON price surge on Thursday was a result of artificial demand, and it reversed from a key technical resistance level.
On Thursday, the 29th of October, TRON [TRX] prices surged from $0.328 to $0.365 in a matter of hours. Attackers who had drained Binance hot wallets for $6.3 billion across ten blockchains rushed to swap their USDT for TRX.
Since Tether can freeze its stablecoin, the urgency to swap to TRX, where no central issuer can block transfers, saw a $234 million USDT swap to TRX on SunSwap, at $0.367 per TRX, blockchain data firm Bitquery confirmed.
At that time, the TRX market price had been only $0.33, which helped explain the swift price surge. Other intelligence platforms have since reported whale wallets with the stolen funds, turning the artificial buying spree into a supply overhang for the global stablecoin settlement giant.
TRX price bounce stopped at key retracement level
Since Thursday’s price spike, the Layer 1 blockchain’s native token has witnessed a 13.4% price correction. Incidentally, the market structure on the 1-day timeframe had been bearish.
The swing move southward from $0.3775 to $0.3108 in May and early June was the one that dictated the bearish market structure. Using these levels, Fibonacci retracement levels were plotted.
The 78.6% Fibonacci retracement level was at $0.363, and the price surge halted just above this level on Thursday. Thereafter, a daily session close below $0.3108 ensued.
The OBV was sliding lower, continuing the downtrend of recent weeks, while the MACD also took a sharp nosedive.
What next for TRX?
The MACD formed a bullish crossover in bearish territory, signaling a price bounce was underway. Based on the size of the impulse move down from $0.365, it is likely that the current bounce could go to $0.333-$0.352.
On the way, the $0.33 supply zone was also a place that could see a bearish price reaction.
Swing traders and long-term investors need to be mindful of the larger bear trend at play. A price bounce to $0.33 followed by a slide toward $0.30 or even $0.27 is a possibility for TRX in the coming weeks.
Final Summary
- The TRON price surge on Thursday was a result of artificial demand, and it reversed from a key technical resistance level.
- The altcoin is now in a bearish price structure, though a short-term bounce toward the $0.33 supply zone is possible.
