Justin Sun is one of the most controversial figures in cryptocurrency, but the Tron network has been used very actively for years. After USDC excluded the Tron network, concerns about network security and its future emerged. Tether, during this period, announced its “rescue tool” to ensure that stablecoins would remain secure in the event of potential security breaches or network outages.
Tron (TRX)
In February, the RSI of TRX Coin reached 91, entering the extreme overbought zone. Even after the RSI settled down to 71, it still lingers in the overbought zone, reflecting a strong appetite for risk. Moreover, this extreme demand is supported by the rise in BTC prices, indicating more potential for TRX to increase.
So, what’s the current situation for TRX investors? The graph below shows holders who have kept their coins for more than a year, those who have held between one month and twelve months, and those who have held TRX for less than a month. Over the past week, we’ve seen growth in the group of traders holding TRX for less than a month, reflecting demand from short-term investors.
This will have two consequences. Firstly, as the number of traders chasing short-term trades increases, the price will continue to rise. On the other hand, in the event of potential sales, this group has the potential to quickly sell 3.73 billion tokens, thus triggering a deeper bottom.
TRX Price Prediction
On the technical front, the 200-day EMA, 20-day EMA, and current price are above. This suggests that even though the RSI remains strong, there is a weakening in momentum. Accordingly, the forming death cross provides an early warning that the ongoing demand could reverse.
The IOMAP chart shows us support and resistance levels based on investor purchase costs. TRX has a weak support at $0.127. If this area cannot be maintained, we could see a drop of approximately 10% to the levels of $0.123 and $0.119.
These clusters help predict future support or resistance levels. The nearest resistance is at $0.135. While a potential drop in BTC prices seems to accelerate sales, the current situation could allow TRX Coin to continue its weak performance.
