Over the past week, TRON [TRX] has experienced a significant surge of 20%, reaching its highest point in 2500 days, with the current price sitting at $0.1986 at the time of writing. This substantial increase has attracted the attention of both traders and investors, signaling a robust bullish trend.
With TRON’s upward trajectory continuing, many are questioning the sustainability of this momentum. To delve deeper into the driving forces behind this rally, let’s analyze the technical aspects, on-chain data, and liquidation patterns.
Factors Driving TRON’s Price Surge
TRON has displayed a noticeable upward trend, maintaining its position within an ascending channel. The price recently surpassed crucial resistance levels, peaking at $0.1983, showcasing a significant bullish sentiment.
Presently, TRON is encountering immediate resistance around $0.20. A successful breakthrough at this level could potentially target $0.22 as the subsequent key resistance. Hence, the upward trajectory will persist as long as the price remains above essential support levels.
In terms of support, $0.1653 stands out as a robust level where the price has previously stabilized during minor setbacks. Should TRON undergo a pullback, this level might serve as a foundation for a potential rebound.
The immediate hurdle lies at $0.20, followed by the notable resistance at $0.22. A breakthrough above these levels could propel TRON towards higher price levels in the near future.
Additionally, the 9-period Moving Average (MA) has crossed above the 21-period MA, indicating strong short-term momentum. This MA intersection commonly signals a bullish trend, suggesting a potential upsurge in TRON’s price.
Moreover, the MACD indicator supports the uptrend, with the MACD line (blue) positioned above the signal line (orange), signifying robust buying pressure that could uphold the continuation of the rally.
On-Chain Analysis: Network Support for the Surge
On-chain data exhibits neutral sentiment. The Net Network Growth has risen by 0.56%, indicating consistent activity. However, the In-The-Money ratio stands at -0.39%, suggesting some bearish influence.
Despite this, there has been a 1.02% increase in large transactions, hinting at significant interest from institutional traders, which could further drive price dynamics.
Total Liquidations Impact
The total liquidations chart depicts $35.68 million in liquidations, predominantly dominated by short liquidations. This indicates that traders speculating against TRON have been compelled to exit their positions, contributing to the prevailing bullish momentum.
The enforced buying pressure from short liquidations likely plays a part in the ongoing upward trend.
Long-Term Sustainability of TRON’s Bullish Momentum
TRON’s 20% surge over the week is backed by robust technical indicators like the MA crossover and MACD. As the price approaches critical resistance levels around $0.20, a breakthrough could drive it towards $0.22.
On-chain signals suggest stable network growth and heightened institutional interest. Consequently, as long as TRON maintains a position above $0.1653, it appears poised for further advancements in the immediate future.