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The price of TRON (TRX) has been on an impressive run of late and established a double-top technical formation. Technical analysts typically utilize this pattern to forecast a trend reversal when an asset reaches its peak. Tron is currently trading close to its all-time high level, which has attracted traders’ attention to the double-top. Related Reading GRASS Token Fails To Break $2 Level – Is It Time To Buy? 18 hours ago
TRX is selling at $0.1654, and currently with a price projection of 67% in the next three months, CoinCheckup data reflect. However, the estimate permits some safety line, traders are starting to get more worried due to the changes in the market. TRX seen rising in price in the coming weeks. Source: CoinCheckup Increase In Sales Volume Raises Concerns
In a recent post, analyst Alan Santana saw a significant increase in selling volume, which raised concerns about market pressure. High selling volume typically indicates that upward momentum is beginning to wane, particularly when paired with pessimistic sentiment. #Altcoins | #TRX ✴️ Tron: New High & Double-Top (Full Trade-Numbers SHORT Incl.)
TRXUSDT (Tron) just produced a new high and double-top. This is one of the pairs that offers the best risk reward ratio because it trades so close near the All-Time High, near resistance.
Current… pic.twitter.com/aztSSGElGf
— Alan Santana (@lamatrades1111) November 3, 2024
This pattern may be concerning for TRX traders as it suggests that a decline may be imminent. Experts believe such a reduction could occur even in the coming weeks or months, despite the pattern being harder to predict.
In addition to these worries, there isn’t enough good buying volume. Peak purchasing activity typically comes before price growth in a healthy market. Regretfully, TRX hasn’t been like this recently. It is evident from the present trading activity that buyers are not entering the market with sufficient zeal, which could be short-term bad news for TRON investors. TRON Holding Period Down
TRX investors have been holding TRON coins for a shorter period of time as the holding period fell by a whopping 70% as of lately. The downtime can be seen as a thanks to the lack of faith investors have in the coin’s value in the future. TRX market cap currently at $6.8 billion. Chart: TradingView.com
The number of people who have a habit of keeping their TRON coins for a longer duration has also fallen. This has happened due to the fact that more investors have started selling their coins. The CMF indicator, which is the measure of the pulled push activity, also makes this view stronger. Will TRX Make It Big In 6 Months?
TRX is currently down 2.02% over the past day. This could be due to traders being cautious. In light of this double top and the rise in selling volume, traders should exercise caution in order to anticipate and seize the trend reversal and subsequent decline. Related Reading Bitcoin Breaks $73,000, Yet Google Searches Stay Stagnant—Is Hype Fading? 2 days ago
Even though these are short-term concerns, TRON still has the chance to overcome them with great optimism in the long run. Experts believe that TRON will grow by 141% in six months, showing strength, and it may go up to a surprising number at one year with 180% growth.
Traders should continue to watch for external shocks from market volatility and economic factors that could affect their investment as TRX approaches these respective milestones.
Featured image from Coins.ph, chart from TradingView