- TRON founder Justin Sun has reportedly sold over $21 million worth of TRX on Binance.
- This transaction may have contributed to the latest slump in the value of TRX.
- TRX has struggled to maintain its crucial resistance level at $0.124.
TRON’s Price Drop: Sun’s $21M TRX Transfer to Binance Explained
Justin Sun’s Major TRX Move
In an unexpected turn of events, Justin Sun, the founder of TRON, reportedly instructed his team to move a massive reserve of TRX tokens to Binance. This substantial movement of tokens, amounting to roughly 173.821 million TRX and valued at around $21.37 million, was a significant factor in the subsequent drop in TRX’s market price.
The Immediate Impact on TRX Value
Following this massive transfer to Binance, TRX saw its price slide. Earlier in the week, TRX demonstrated resilience, even achieving a five-week high of $0.125, while major cryptocurrencies like Bitcoin and Ethereum encountered corrections. This transfer, however, seemingly altered the bullish trend for TRX.
Market Reactions and TRX’s Resistance Levels
Despite the broader market showing signs of recovery earlier this week, TRX’s price faced difficulties. The token fell back from its critical resistance level at $0.124. This pullback has raised questions about the immediate future of TRX, especially if selling pressure persists.
Increasing Activity on Tron Network
Crypto analytics firm IntoTheBlock highlighted that the Tron network has seen a significant increase in active addresses, approaching 2.5 million daily. This growing activity indicates a broader adoption of the Tron network, even as the market reflects volatility. The consistent rise in active addresses suggests a robust user interest that may help stabilize TRX in the long run.
Future Projections for TRX Price
Looking ahead, should TRX manage to overcome its current resistance at $0.124, the next key levels would be between $0.126 and $0.128. These levels represent previous highs where the token faced significant sell-offs, indicating potential resistance. Conversely, a failure to hold support at $0.121 could see TRX revisiting psychological support at $0.120, which has historically provided a strong floor for price bounces.
Conclusion
The recent transfer of TRX by Justin Sun’s team to Binance has undoubtedly influenced the token’s price movement, causing a short-term decline. However, the increasing user activity on the Tron network is a positive sign, indicating potential for recovery. Investors and traders should keep a close watch on resistance and support levels to navigate TRX’s price movements effectively.
