Tron whales pile into TRX, yet volatility risks remain – Why?

Key Takeaways

Transactions worth $100k on Tron network surges to 98%, reaching a 2-year-high . TRX is experiencing strong demand from both whales and retail, setting the altcoin for a potential rally to $0.4. 

Since hitting a low of $0.29 a week ago, Tron [TRX] has traded within an ascending channel. Over this period, the altcoin surged 7.09% to a local high of $0.355 before slightly retracing to $0.352 at press time. 

Amid this price uptick and market rebound, investors, especially whales, have staged a strong comeback in the market. 

Whales are back on Tron

According to CryptoQuant analysts Darkfost, USDT transfers over $100k have recently dominated Tron’s network activity.

On the 13th of September, 86% of all USDT transaction volume on Tron was driven mainly by large transfers. 

Typically, such a high level of dominance indicated whale or institutional-level transactions, levels last witnessed in 2023. 

Significantly, the massive uptick in large transfers was mainly driven by the recent introduction on the Nasdaq.

This resulted in higher institutional interactions and higher-level flows into the Tron Network. 

On-chain activity goes stengthens

Significantly, amid rising whale activity, Tron’s network activity surged as well, indicating increased participation across all participants. 

According to Dune, Tron’s Total Active Accounts surged to 298.6 million, with Active Accounts (30D) rising to 15.5 million, as of writing. 

Such a spike in the number of active users reflects growing adoption and overall network usage. 

On top of that, the Tron network has recorded significant growth in the number of daily transactions. In fact, transactions on the Tron network have grown from 4 million in 2023 to 11.4 million today, reflecting a sustained network usage rate. 

Typically, when these two metrics rise in tandem, it means that Tron’s performance is backed by strong usage, a setup that historically leads to higher value. 

Retail investors are not left behind either

Notably, just like whale activity intensified, Tron recorded significant activity from small-scale investors.

According to Coinalyze, Tron’s Native token TRX has recorded sustained buying pressure over the past five days. 

In fact, At the time of writing, Tron saw 218.89 million in Buy Volume compared to 153.9 million in Sell Volume over the past day.

As a result, the altcoin recorded 64.9 million Buy Sell Delta, a clear sign of aggressive retail accumulation. 

Historically, increased accumulation during price discovery phases has resulted in higher prices for an asset. 

What about TRX?

According to AMBCrypto’s analysis, TRX has benefited extensively from increased whale activity on the Tron Network.

As whale returned to Tron, TRX recorded sustained demand, with buyers dominating the market.

Equally, the increased activity has coincided with TRX bouncing back on its price charts, rising from $0.29 to $0.35, reflecting strong demand.

At press time, TradingView data showed strong buying pressure, with the Relative Strength Index (RSI) climbing to 58, just entering bullish territory. 

Meanwhile, the Stochastic RSI surged to 99, signaling an overbought condition.

When momentum indicators like these hit extreme levels, especially with a rising RSI, it typically points to strong upward momentum, but also hints at potential volatility ahead.