The price of TRON (TRX) has seen an impressive rally recently and created a double top technical formation. Technical analysts usually use this pattern to predict a trend reversal when the asset reaches its peak. Tron is currently trading near its all-time high, which has drawn traders’ attention to the double top.
TRX is Selling at $0.1654Currently, with an expected price of 67% during the next three months, CoinCheckup data reflects. However, appreciation allows for some lines of safety, and traders are starting to get more concerned due to changes in the market.
The increase in sales volume raises concerns
In a recent post, analyst Alan Santana saw a significant increase in selling volume, raising concerns about market pressures. High selling volume usually indicates that bullish momentum is beginning to wane, especially when combined with pessimistic sentiment.
#Alternative currencies | #TRX
Tron: New High & Double-Top (FULL SHORT TRADE FIGURES INCLUDING.)
TRXUSDT (Tron) just produced a new high and double high. This is one of the pairs that offers the best risk-reward ratio because it is trading near the all-time high, near resistance.
present… pic.twitter.com/aztSSGElGf
– Alan Santana (@lamatrades1111) November 3, 2024
This pattern may be worrying for TRX traders because it indicates that a decline may be imminent. Experts believe that such a decline could occur even in the coming weeks or months, although this pattern is difficult to predict.
In addition to these concerns, there is not enough good buying volume. Peak buying activity usually comes before price growth in a healthy market. unfortunately, TRX It hasn’t been like this lately. It is clear from the current trading activity that buyers are not entering the market with enough enthusiasm, which could be bad news in the short term for TRON investors.
Tron holding period is low
TRX investors have held TRON coins for a shorter period of time as the holding period has decreased by a whopping 70% recently. The downtime can be seen as a thank you to investors’ lack of confidence in the future value of the currency.
The number of people who used to hold their Tron coins for a longer period has also decreased. This happened due to the fact that more investors started selling their coins. The CMF index, a measure of withdrawn payment activity, also makes this view stronger.
Will TRX be a hit in 6 months?
TRX is currently down 2.02% over the past day. This may be due to traders being cautious. In light of this double top and high selling volume, traders should be careful in order to anticipate and exploit the trend reversal and subsequent decline.
Although these concerns are short-term, TRON still has the opportunity to overcome them with great optimism in the long term. Experts believe that TRON will grow 141% in six months Showing strength, it may rise to a surprising number in one year with 180% growth.
Traders should continue to monitor external shocks from market volatility and economic factors that could impact their investments as TRX approaches these milestones.
Featured image from Coins.ph, chart from TradingView
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