Altcoin Tron (TRX) investors may be experiencing mixed emotions. On the one hand, a recent tweet by IntoTheBlock attracted attention. He specifically emphasized that 98% of TRX holders are currently in profit. This seemingly paints a rosy picture for the token. But the cryptocurrency market rarely moves that simply…
What’s next for altcoin TRON?
Although a high profit margin indicates an upward trend, it can also indicate a potential danger sign. When crypto investors sit so heavily on earnings, they tend to leave their profits off the table. So, this can lead to sell-offs and lower prices.
To measure this possibility, Hyblock Capital’s data is looked at. The findings revealed that a significant amount of TRX holdings are open to liquidation if the price falls below the critical $0.14 level. This suggests that a price decline could trigger a sell-off and push the price lower even further.
There is a decrease in price
As of this writing, this concern seems to be coming true. cryptokoin.com data shows that TRX has experienced a slight decline of 0.5% in the last 24 hours. Its current price is $0.1368. The near future of the token, whose market value exceeds 12 billion dollars, seems uncertain.
Further analysis using charting tools reinforces this uncertainty. Chaikin Money Flow (CMF) on Tron’s daily chart has fallen, indicating an increase in selling pressure. Additionally, the MACD indicator exhibited a bearish crossover. So this shows that the price decline is likely to continue.
Bollinger bands attracted attention
However, a glimmer of hope emerges from the Bollinger Bands. TRX’s price appears to have entered a lower volatility zone, which will potentially minimize the size of any price decline. Although price action remains bearish, Tron’s fundamentals paint an opposite picture. The Tron blockchain itself continues to experience significant growth in adoption and usage.
Data from TRONSCAN reveals a remarkable achievement: Blockchain recently surpassed a staggering $11 trillion in total transfer volume. This strong network activity of over 7.2 billion transactions and 216.6 million accounts indicates a healthy and growing ecosystem.
The fundamental question remains: Will this strong network activity translate into a price recovery for TRX? Only time will tell whether these positive fundamentals can outweigh potential selling by for-profit investors. One thing is for sure, the coming days and weeks will be very important for Tron, making it an interesting token to keep a close eye on.
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