There has been a remarkable increase in monthly fees within the TRON [TRX] network, reaching an all-time high of about $200 million. This uptick indicates strong positive momentum and heightened interest in utilizing the network’s blockspace.
With TRON’s current price standing at $0.1604, showing a 0.63% increase at the moment, there is speculation about whether this surge in fees could serve as the catalyst for TRON’s next substantial rally.
Tron’s Technical Analysis: Are Bullish Indicators Holding Steady?
When observing TRX’s price chart, the Bollinger Bands suggest that TRON is trading near the upper band, signifying bullish pressure. The current price of $0.1599 is hovering around the crucial resistance level of $0.1635. If it manages to break through this barrier, it could pave the way for further upward movement.
Furthermore, the Relative Strength Index (RSI) figure of 59.47 remains within a healthy range, indicating that TRX has potential for further growth without being in an overbought territory.
Moreover, the recent rally shows no immediate signs of weakening, although traders should be alert for any potential corrections. A retracement might happen if TRON struggles to breach the resistance. Nevertheless, for now, the bulls maintain control.
Tron’s On-Chain Analysis: What Insights Does the Data Provide?
As per data from IntoTheBlock, TRON’s on-chain metrics portray a somewhat mixed profile. The Net Network Growth stands at 0.59%, showcasing steady but not extraordinary expansion.
The In the Money indicator sits at -0.20% in a bearish territory, suggesting that a slight majority of TRX holders are currently facing losses.
Conversely, the large transactions exhibit neutral levels at 0.87% activity by significant holders, indicating that whales are neither actively buying nor selling, hinting at stability in the short term.
Consequently, the amalgamation of positive price movements and neutral on-chain data might lead to a gradual rally rather than a sudden breakout.
TRON’s social dominance remains relatively low at 0.285%, highlighting limited buzz on social media platforms. While this implies reduced hype around TRX, it also presents an underlying opportunity.
If sentiment on social platforms transitions in favor of TRON, the increased attention could drive the token towards new peaks.
Long/Short Ratio: Can a Short Squeeze Propel the Upward Momentum?
The long/short ratio reveals that 57.58% of traders have taken short positions, indicating prevailing skepticism in the market despite recent price upticks.
Nonetheless, this setup could lay the groundwork for a short squeeze if prices keep climbing, compelling short sellers to cover their positions and adding pressure to buy.
The surge of $200 million in TRON’s fees reflects a mounting demand for its ecosystem, contributing to the overall bullish outlook. While on-chain signals are lukewarm, the positive price performance and the potential for a short squeeze could drive further advancements.
Consequently, this fee surge might indeed catalyze TRON’s upcoming rally, but traders should remain vigilant for confirmation via robust social and on-chain indicators.