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The recent decline in TRX price presents a significant moment for investors, driven predominantly by aggressive sell-offs from large holders.
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Despite the cluster of selling activity, broader market indicators still project a bullish sentiment, suggesting potential recovery ahead.
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“The current downtrend may serve as a preparative phase for an eventual price rally,” noted an analyst from COINOTAG.
TRX experiences a surprising decline led by large holders’ sell-offs, yet market indicators signal potential for an upcoming price rebound.
Large Traders Force TRX to Trend Lower
The significant drop in TRX price over the past 24 hours has mainly been influenced by large holders, known as “whales”, who have offloaded a total of over 8.27 million TRX, amounting to approximately $2 million. This sudden influx of sell orders has triggered a notable decrease in price, raising concerns about potential further declines.
Source: IntoTheBlock
This decision to liquidate holdings appears to be a strategic move by these large traders, aiming to mitigate risk after a notable price appreciation of 9.84% over the preceding weeks. The sell-off coincided with TRX nearing a critical resistance level, as indicated by the Bollinger Bands.
The Bollinger Bands are a widely used volatility indicator, consisting of three key lines: the upper band (resistance), the lower band (support), and the middle band (simple moving average). Historical trends suggest that trading upwards towards the upper band can often lead to subsequent price corrections.
Currently, there are two vital price levels to monitor: the mid-zone acting as potential support at $0.2398—a likely rebound area—and the lower band support positioned at $0.2246.
Source: TradingView
Applying the Average Directional Index (ADX) further supports the notion of a sustained downward trend. The upward movement of the ADX suggests that the current price decline may persist, with TRX at risk of breaching the mid-level band.
Bullish Environment Remains Intact
Despite the recent downturn, the overall market environment for TRX remains subtly optimistic. The Global In and Out of the Money Around Price metric illustrates a state of positive sentiment among the community.
As noted, over 84% of TRX holders currently find themselves in profit, which likely encourages them to maintain their positions rather than selling into the current weakness.
Source: Artemis
Moreover, the TRON blockchain has recorded over $2.2 million in trading fees within the last 24 hours—outpacing other chains—which indicates a thriving number of transactions and user engagement within the ecosystem.
Thus, the underlying structure continues to portray a bullish outlook, suggesting that the recent price dip is likely a temporary scenario before a potential rebound in the value of TRX.
Conclusion
In summary, although TRX has faced notable selling pressure from large holders resulting in a price decline, the broader market indicators suggest that the bullish sentiment remains intact. With a potential support structure in place and significant profit levels among holders, TRX may well be poised for a rebound in the near future.
