- At the time of writing, TRX was trading above its 200-SMA, showing a long-term bullish trend
- Token burns hinted at a deflation mechanism for the altcoin
TRON (TRX) has recently registered a small price drop on the charts, from $0.1678 near the beginning of the month to $0.1654 – a drop of 1.8%.
And yet, the altcoin’s market capitalization rose 0.59%, while 24-hour trading volume also rose 20.49% – a sign of growing investor interest. Together, these statistics highlighted the continued optimism surrounding the altcoin ecosystem.
Here it is worth noting that TRON, fueled by strategic initiatives such as token burns, is designed to reduce supply and drive long-term value growth.
Analyst The projections also remain bullish, pointing to a logarithmic price increase that could push TRON towards the $1.11 target. The $0.1635 support level has historically catalyzed a move north. And a successful retest of this level will trigger further bullish action, setting up a possible rise to $0.18 this week.
Technical indicators point to a continued recovery
In October 2024, TRON conducted a major token burn, removing more than 149.6 million TRX tokens from circulation. These had an estimated market value of approximately $25 million.
This burn is part of Tron’s commitment to reduce token supply, promoting scarcity, which can positively impact price stability in the long term.
On the daily chart, the price of the altcoin has been above the 200 SMA line since the beginning of August. What this means is that the position of the SMA line has continued to reinforce a long-term bullish trend for the altcoin.
Source: TradingView
Volume levels were moderate and showed no major spikes at the time of writing. This indicated a stable environment with little volatility for TRX traders.
The three lines of the Alligator indicator (green, red and blue) also appeared to be growing towards each other, indicating a consolidation phase. This setup can be interpreted as a sign that TRX is gathering strength and possibly preparing for its next move.
TRON holders enjoy profits, less than 1% in losses
At the time of writing, approximately 97.89% of all addresses with TRX were ‘In the Money’, indicating that these holders were making a profit relative to their purchase price.
Only a small percentage, 0.76% of addresses, were ‘Out of the Money’, meaning these holders had suffered a loss at the altcoin’s price level.
Meanwhile, 1.35% of addresses were “At the Money” – a level where the purchase price is almost equal to the trading price of the cryptocurrency.
Such a high percentage of profitable addresses is a sign of strong market confidence in TRON, with a majority of investors benefiting from recent price developments.
Source: IntoTheBlock
High liquidation levels around $0.165
At the time of writing, there appeared to be a balance of long and short liquidation levels around TRX’s press time price of $0.165.
On the left, cumulative short liquidation leverage (red area) started to build significantly below $0.164. These are likely to increase as the price falls. This means that there was heavy leverage on short positions around these levels.
Source: Coinglass
Conversely, cumulative long liquidation leverage (green area) on the right rose above $0.166, while leverage grew significantly above $0.170.
This concentration suggested where long positions could face liquidation if the price of TRX rose sharply.