TRON (TRX) recently experienced a slight price drop, decreasing from $0.1678 at the start of the month to $0.1654, marking a 1.8% decline.
Despite this, the altcoin’s market cap saw an increase of 0.59%, while the 24-hour trading volume surged by 20.49%, indicating a rising interest from investors. These combined metrics emphasize the constant positive sentiment surrounding TRON’s ecosystem.
It is noteworthy that TRON, through strategic measures like token burns, aims to reduce the token supply, fostering long-term value growth.
Analysts are optimistic, foreseeing a logarithmic price increase that could propel TRON towards the $1.11 mark. The historical support level at $0.1635 has consistently driven upward movement. A successful retesting of this support could trigger further bullish momentum, potentially leading to a spike to $0.18 within the week.
Continued Rally Indicated by Technical Indicators
In October 2024, TRON carried out a significant token burn, eliminating over 149.6 million TRX tokens, valued at around $25 million from circulation.
This burn is part of TRON’s strategy to decrease token availability, promoting scarcity, which may positively impact long-term price stability.
On the daily chart, TRON’s price has remained above the 200 SMA line since August, indicating a sustained bullish trend. This signifies a positive outlook for the altcoin’s future price movements.
Trading volume has been moderate with no major spikes, suggesting a stable and low-volatility trading environment for TRX investors.
The convergence of the Alligator indicator’s three lines (green, red, and blue) indicates a consolidation phase, signifying that TRX might be gearing up for its next market move.
Profitable TRON Holders Outnumber Losses
Currently, around 97.89% of TRX holders are in a profitable position compared to their buying price, while only 0.76% are at a loss based on the prevailing price levels.
Furthermore, 1.35% of addresses fall into the “At the Money” category, where the purchase price closely aligns with the current trading rate.
Such a high percentage of profitable addresses reflects a strong market confidence in TRON, with the majority of investors benefitting from recent price movements.
Observations on Liquidation Levels Around $0.165
Currently, there appears to be a balanced distribution of long and short liquidation levels around TRX’s price of $0.165.
A noticeable accumulation of short liquidation leverage is seen below $0.164, indicating significant leveraged short positions that could intensify if prices drop further.
Conversely, on the higher end, the buildup of long liquidation leverage above $0.166 suggests potential liquidations if TRX’s price experiences a rapid ascent, especially beyond $0.170.
This distribution highlights the critical price levels where liquidations may occur for both long and short positions in the TRX market.