Tron (TRX) Price Heatmap: Is a Local Bottom on the Horizon?

by

After navigating through the tumultuous waters of the crypto market for several years, I find myself standing at the precipice of yet another potential turning point for Tron (TRX). As a seasoned investor who has seen the highs and lows, I’ve learned to read between the lines and trust in the resilience of this industry.

After Christmas, the cryptocurrency market shifted into a bearish trend, causing many assets to experience significant declines. Tron (TRX) is no exception to this downturn. In fact, just earlier this month, the asset reached a new high and regained its position among the top 10 by market capitalization, stirring optimism within the community.

Observing the recent market trends as a researcher, I’ve noticed that the latest pullback has escalated its declines, causing TRX to drop by more than 43% from its recent peak at $0.43 to its current trading price of $0.25. Nevertheless, the data suggests we might be approaching a temporary low point soon.

TRX Nearing a Turning Point?

According to an analysis by CryptoQuant, the one-year moving average plus two standard deviations (represented by the ‘green’ trend) might play a significant role in providing support for TRX during the ongoing market downturn.

Historically, the “green” trend (a term often used to refer to positive or upward market trends) has proven to be robust and supportive during market uptrends, known as bull rallies. It is expected that this trend will offer similar support, possibly signaling a temporary low point for TRX’s price in the local market.

At present, the values for the rising, violet, and aqua patterns are $0.23, $0.40, and $0.49 each. These values tend to fluctuate and might rise further due to growing attention and desire. As the market becomes more active, it’s essential to monitor the violet and blue trends, as they could potentially act as obstacles. If TRX price manages to stay above the green trendline, it may indicate the beginning of a fresh upward movement.

From another perspective, CryptoQuant signals potential weakness in the ongoing bull cycle if the price falls below the green trendline. However, as demand increases, Tron’s price may aim for the purple and blue trend levels. If it surpasses the 0.40 level, this would suggest a strong market sentiment.

What’s Next For Tron?

Earlier this month, TRX’s rally was driven by speculations about Grayscale listing and Tron founder Justin Sun’s initiatives, including a $30 million purchase of WLFI tokens tied to Trum’s project and his advisory role. Sun’s involvement with the artwork “Comedian” has also engaged the community, igniting ripple effects for tokens like BAN and related projects.

Even though the recent downturn in the rally may have caused some concern, analysts are still looking forward to a relatively positive year for the asset. For instance, CoinCodex anticipates that TRX could experience a slight increase of approximately 2.93% to reach $0.264 by January 24, 2025. Overall, the outlook is neutral, while the Fear & Greed Index suggests a high level of optimism at 73 (Greed), indicating that investors are feeling quite hopeful.

TRX has shown that it’s an actively traded coin, with approximately half its days being green and a volatility rate of about 17.17% over the last month. This situation has caught the attention of analysts who believe it presents a favorable buying opportunity. They predict a potential short-term peak at $0.268 for TRX on December 30, 2024.

Read More

2024-12-26 18:56