- Tron’s TVL reached new heights amid a show of resilience from the bulls.
- The recent increase showed signs of demand for whales.
We’re keeping an eye on Tron [TRX] and its own cryptocurrency this year, and there is no doubt that both have performed exceptionally well. TRX in particular appears to be standing apart from the rest of the market, allowing it to continue its rally, with limited pullback.
How much are 1,10,100 TRXs worth today?
Tron shows no signs of slowing down, even as other coins enjoyed healthy demand over the past two weeks. The TVL, one of the best measures of organic growth, just hit a new all-time high of $7.78 billion.
Source: DeFiLlama
The positive TVL growth reflected the robust liquidity flowing into the Tron ecosystem. It indicated that the market was gaining more confidence in Tron’s future, meaning more investors were willing to tie up their money for the long term.
The TVL growth automatically goes hand in hand with robust demand for Tron’s native cryptocurrency, TRX. The latter is also experiencing explosive demand, which is responsible for the prolonged rally of the past two weeks.
Will TRX embark on a new relief?
TRX’s price chart showed that it has resumed the bullish trajectory initially observed in September. It entered a minor retracement in the first week of October, resulting in a monthly low of $0.084. Since then, it has bounced back as much as 11% to a press-time high of $0.094.
Source: TradingView
TRX could be headed for another major pullback. There were several signs at the time of going to press that suggested such an outcome was in the offing. For example, the RSI and MFI were well into overbought territory, which should technically slow demand.
According to the price chart, TRX’s press time price level was also historically significant. The same price level has functioned as a resistance zone (take-profit level) several times in the past. This significantly increased the chance of a bearish pivot.
Tron’s on-chain data showed that volume is slowing after peaking on October 24. However, the price is on the rise even after the volume peak, indicating that whales and institutions could push the price higher.
Source: Santiment
Realistic or not, here is the market cap of TRX in terms of BTC
At the time of writing, Tron’s Weighted Sentiment measure was closer to the monthly low compared to the monthly high. This was a sign that a decline is expected.
Despite the above findings, it is clear that TRX’s price action during this period was more in line with whale demand than retail. This could also indicate that a retracement does not necessarily result in a substantial disadvantage.