Cryptocurrency figurehead Justin Sun’s Tron network continues to navigate through active use despite recent security concerns. After the exclusion of the Tron network by USDC, questions about its security and longevity have surfaced. In response, Tether revealed a “rescue tool” designed to safeguard stablecoins in cases of security threats or network issues.
Recent Market Activity for Tron (TRX)
The Relative Strength Index (RSI) of TRX Coin soared to 91 in February, signaling an overbought condition. Even with a reduction to an RSI of 71, the currency maintains an overbought status, indicating a prevailing risk appetite among investors. This demand coincides with the surge in BTC prices, hinting at a continued bullish trend for TRX.
The current landscape for TRX holders shows an increase in short-term traders, as evidenced by a rise in owners holding the cryptocurrency for less than a month. This surge points to heightened interest from investors looking for quick returns.
The influx of short-term traders could drive the price of TRX upward; however, it also raises the risk of a sharp price decline. Should these investors decide to offload their holdings, they could potentially sell 3.73 billion tokens, potentially leading to a steep price drop.
Technical Indicators and Price Predictions
Technical indicators show that the 200-day and 20-day Exponential Moving Averages (EMAs) are both higher than the current price, suggesting a slowdown in momentum. The emergence of a death cross serves as a forewarning for a possible reversal in the current demand trend.
The IOMAP chart highlights the support and resistance levels based on investor purchase costs. TRX exhibits weak support at $0.127, with a potential 10% drop to $0.123 or $0.119 if this level fails. Resistance lies at $0.135, and any downturn in BTC prices could exacerbate the selling pressure on TRX, potentially leading to its continued underwhelming performance.
