While Bitcoin continues its historic rally past $110,000, Tron (TRX) has been quietly building strength in a tight consolidation pattern. Despite trading 66% below its December peak, fresh on-chain data suggests TRX could be preparing for a significant breakout. Recent Bitcoin price action hitting new all-time highs has set the stage for potential altcoin rallies.
On-Chain Metrics Signal Growing Buy Pressure
CryptoQuant’s latest analysis reveals that TRX has entered a strong buying pressure zone, with the Buy/Sell Pressure Delta turning decisively positive. This key metric, which tracks net buying activity over 90-day periods, has historically preceded significant price movements when aligned with robust fundamentals.
Technical Analysis Points to Potential Breakout
TRX is consolidating between $0.26 and $0.28, with multiple technical indicators suggesting accumulation:
- 34-day EMA providing strong dynamic support at $0.26
- Higher lows forming since early April
- 50, 100, and 200 SMAs aligned bullishly below current price
- Volume profile showing increased buying at support
Key Price Levels to Watch
For confirmation of the bullish setup, traders should monitor:
- Immediate resistance: $0.28
- Critical support: $0.26
- Breakout target: $0.30
- December high retest: $0.36
Frequently Asked Questions
What is causing the increased buying pressure in TRX?
The surge in buying pressure can be attributed to strong network fundamentals, including leading stablecoin settlement volume and growing user activity on the Tron network.
Could TRX follow Bitcoin’s recent rally?
While Bitcoin has dominated recent market movements, historical patterns suggest altcoins often follow Bitcoin’s lead after periods of consolidation. TRX’s technical setup and on-chain metrics indicate potential for upside movement.
What are the key risk factors to consider?
A break below $0.26 support could trigger a decline toward $0.2430. Additionally, broader market sentiment and Bitcoin’s performance will likely influence TRX’s short-term price action.
