- TRX could witness huge liquidation at the $0.14 mark.
- The token’s value dropped marginally in the last 24 hours.
On the 8th of March, IntoTheBlock posted a tweet highlighting that more than 98% of Tron’s [TRX] holders were in profit.
At first glance, this might look pretty optimistic for the token, but things were more complicated that it seemed.
Tron to turn bearish soon?
Whenever such a high percentage of investors are in profit, they might soon plan to take an exit, exerting selling pressure. To see whether that is the case, AMBCrypto checked Hyblock Capital’s data.
We found that a substantial amount of TRX could be liquidated just under the $0.14 mark.
Source: Hyblock Capital
In fact, the token’s price had already started to decline at press time. According to CoinMarketCap, TRX was down by 0.5% in the last 24 hours.
At the time of writing, TRX was trading at $0.1368 with a market capitalization of over $12 billion.
To double-check whether selling pressure had already increased, AMBCrypto took a look at Tron’s daily chart. The Chaikin Money Flow (CMF) registered a downtick, hinting that selling pressure has increased.
Its MACD also displayed a bearish crossover, meaning that the chances of a further price drop were high.
Nonetheless, its Bollinger band pointed out that TRX’s price entered a less volatile zone, which can somewhat help the token in minimizing its price drop.
Source: TradingView
Tron’s network activity remains top-notch
Though the token’s price action looked bearish, the Tron blockchain continued to rise in terms of adoption and usage.
For instance, our look at TRONSCAN’s data revealed that the blockchain recently surpassed $11 trillion in terms of total transfer volume, which was commendable.
Read Tron’s [TRX] Price Prediction 2024-25
At the time of writing, TRX’s total number of transactions had crossed $7.2 billion, with a total of $216.6 million accounts.
Whether the blockchain’s robust network activity has a positive impact on TRX’s price will be interesting to keep an eye on.