The cryptocurrency Tron (TRX) is experiencing a critical phase where the majority of its investors are seeing profits. According to insights from IntoTheBlock, a staggering 98% of TRX holders are currently in a profitable position. Although this may appear as a buoyant indicator, it raises concerns about potential selling pressures that could affect the coin’s stability.
Increased Selling Pressure Looms over Tron
Market analysts foresee a probable increase in sell orders for Tron, particularly if the digital currency’s price approaches the crucial $0.14 threshold. Recent trends have already shown a minor dip, with TRX’s value declining by 0.5% within a day. Trading at $0.1368 and boasting a market capitalization surpassing $12 billion, technical indicators such as the Chaikin Money Flow (CMF) and the Moving Average Convergence Divergence (MACD) predict a strengthening of this selling momentum, pointing to a possible further downturn in price.
Nevertheless, an analysis of the Bollinger Bands reveals that TRX is entering a phase of reduced volatility, which might help cushion any potential declines in its market price.
Tron’s Network Shows Robust Activity
Despite the market’s unpredictability, Tron’s blockchain network continues to demonstrate remarkable performance. Data from TRONSCAN reveals that the network has achieved over $11 trillion in total transfer volume. Additionally, the total number of transactions on the Tron network has exceeded 7.2 billion, with the total account count reaching 216.6 million, highlighting the platform’s widespread use and activity.
With such vigorous network usage, it remains to be seen whether this will translate to a sustained price increase for TRX. As the adoption and application of Tron grow, it might lead to heightened demand and upward price movements. However, the current high profitability rate poses a risk of triggering significant selling activity that could impact Tron’s market performance.