- TRX was testing a key support level of $0.135 at press time.
- Analysts eyed a year high with 100% surge to record $0.27.
While Tron has had major positive steps to report, its native token, TRX, struggled with a strong bear market. TRX has experienced 3.74% gains on weekly charts after a market bounce over the past weeks.
After forming a bullish flag earlier this month, the altcoin has made considerable gains upward.
The recent development and popularity of Tron Network have left analysts eyeing a major breakout for TRX. For Instance, Whales Crypto Trading shared his analysis on X (formerly Twitter), noting that,
“Tron is bouncing from 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 make over 100% gains after a breakout from the current resistance zone reaching $0.27, making ATH.
Prevailing sentiment
According to AMBCrypto’s analysis of Market Prophit, TRX was enjoying positive market sentiment of 0.1127 at press time, Meanwhile, the buzz score was at 1.028.
Source: Market Prophit
The market favorability of the altcoin arises from recent data, wherein Token Terminal showed that the Tron Network overtook Ethereum [ETH], alongside and the increased adoption of Tron by stablecoins such as Tether [USDT].
What price charts suggest
As of this writing, TRX was trading at $0.1336 after a 1.56% decline on daily charts. Equally, the altcoin experienced a decline in trading volume of 32.1% over the past 24 hours.
However, AMBCrypto’s analysis showed that recent gains outweigh losses, with the market remaining optimistic at press time.
Source: TradingView
The Chaikin, Money Flow (CMF), which was positive at 0.11 at press time, suggesting increased buying pressure. This showed that TRX was enjoying increased buying interest, with prices closing near highs.
Equally, the altcoin’s Directional Movement Index (DMI) showed a strong upward movement, sitting at 23.9 at press time, above the negative index of 17.9, indicating the current trend was sustained.
Source: IntoTheBlock
Looking further, AMBCrypto’s analysis of IntoTheBlock showed that the market was enjoying favorability from large holders. The altcoin large holders’ netflow was positive at 69.91mtrx at press time.
This shows more inflow among whales. In the past 24 hours, large holders’ inflow has been at 144.22 mtrx, while the outflow has been below 74.3 million TRX.
This suggested that whales were confident with the prospects of the altcoin.
Source: Coinglass
Finally, data from Coinglass showed that long position liquidation had declined over the past seven days.
Long position liquidation has declined from $54k to $22k, suggesting that long position holders were willing to pay premiums to hold their positions.
Can TRX rally?
If the current market conditions hold, TRX is positioned for an upward movement.
Realistic or not, here’s TRX market cap in BTC’s terms
Therefore, if the daily candle stick closes above $0.135 and reclaims the monthly high at $0.139, TRX will break out of the yearly high of $0.145 and hit $0.155.
However, a pullback at this level will cause the altcoin to decline to $0.128.
