- Tron’s TVL soared to a new historic high, indicating robust confidence in the market.
- TRX could kick off a retracement as its price-RSI divergence manifested.
Over the last few months, we have seen Tron [TRX] achieve impressive growth. It has delivered a positive performance in most aspects, including the price action. However, its TVL has perhaps been one of the most important yardsticks for assessing the state of the Tron network.
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In ideal conditions, the more growth and value that the Tron network can capture, the more investment liquidity it should be able to attract. That is why positive TVL growth is an important metric for assessing a network’s health.
Tron, in particular, is noteworthy because it has been maintaining an upward trajectory. Interestingly, its TVL managed to achieve a new historic high of $6.90 billion in the last 24 hours. This also puts Tron well into the list of fastest growing PoS networks in the crypto markets.
Source: DeFiLlama
Tron’s impressive TVL growth reveals strong confidence in those investing in its ecosystem. The level of confidence is so impressive that it has allowed the network’s native cryptocurrency TRX to outperform most of the competition.
TRX signals potential bearish reversal
Strong demand for TRX has allowed it to overcome the sell pressure that has been holding back many of the top cryptocurrencies, including Bitcoin [BTC]. TRX just concluded a bullish week during which it rallied by over 8%. It exchanged hands at $0.09 at press time.
Source: TradingView
TRX’s price at the time of writing represented a bit of a pullback from its weekly high. This could be the start of a post-rally pullback, and there are multiple signals suggesting that such an outcome is highly likely to happen.
The first major sign is that TRX’s recent upside resulted in a price-RSI divergence, which often signals a pivot. The lower RSI was a sign that the bulls were losing their momentum.
Moreover, TRX’s Open Interest profile confirmed that demand has prevailed for the most part in the last seven days. However, there was a notable dip in buying volume, while selling volume increased considerably in the last 24 hours.
Source: Hyblock Capital
How much are 1,10,100 TRXs worth today?
The above observations affirmed that the bears might just take the dominance away from the bulls. This added to speculation that TRX was turning bearish. TRX’s Weighed Sentiment confirmed these speculations, as it was closer to its monthly low than its monthly high at press time.
Source: Santiment
If sell pressure does indeed manifest this week, then traders should anticipate the next support level near the $0.084 price level. The same level has previously acted as a significant support and resistance range.
