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- 1 Tron (TRX) rebounded from the 200-day exponential moving average and surged.
- 2 TRON could surge 15 to 20% if it breaks the supply zone it just reached.
- 3 RSI and SMA diverged, indicating the trend was holding up.
TRX gained traction in recent sessions despite the weakness in the broader market. While BTC and ETH could fall to their lowest values of the year so far, TRON bounced back from the 50-day EMA and is expected to break out.
However, the crypto is yet to surpass $0.126, if it succeeds, it would likely result in a breakout move. When writing, TRX was hovering close to the $0.0019 mark, reflecting a 1.54% intraday bump. At press time, market capitalization was $10.89 Billion, and it was ranked 12th in the overall crypto market.
Heightened Social Metrics Reflect a Surge in Demand
TRX made an impressive rally this week, adding nearly 6% gains to the portfolio of its investors. Along with the surge in price, social dominance and social volume also showed an uptick.
As per the data obtained by Santimant, social dominance, and social volume surged to a three-month high. The rise in these social metrics indicates increasing user participation.
An increase in the number of users typically results in a corresponding surge in demand, ultimately leading to a bullish price imbalance. The intraday volume inflow surged by 17.3% to $263.2 Million at the time of writing.
Can TRON Break Out?
TRX displayed a bullish bias as it inched closer to a supply zone traced earlier. It has been in an accumulation phase since April 2024, hovering between $0.126 and $0.109 (resistance and support levels, respectively).
If the price surpasses the $0.126 hurdle, a bullish expansion phase may lead the price toward a yearly high and beyond. However, if the bears establish their presence and the price falls, it could continue hovering in the range.
At the time of writing, the RSI line and the 14-day SMA line were placed above the mean line, indicating a positive outlook. Moreover, a divergence in both lines indicated that the bullish trend is not over yet.
What’s Next For Tron?
Tron price has rallied, gaining 6% this week, indicating optimism despite weakness in the broader market. Social metrics like social dominance and volume surged to a three-month peak, highlighting growing user interest.
Moreover, the price action analysis shows that the cryptocurrency has been bullish, approaching the supply zone near $0.126. If it goes past $0.126, it could rise toward the yearly highs, on the other hand, a rejection from the supply may result in continued range-bound accumulation.
The RSI and 14-day SMA were above the mean line, indicating the trend was positive and that bullish momentum would likely last.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
