Tron’s native token, TRX, has surged 66% in the past 24 hours, becoming the best performing altcoin in the top 100. The impressive rally is in line with a broader altcoin surge that has driven the entire market higher.
This surge compares favorably to Ripple (XRP), which has seen its price increase by a staggering 300% in the past 30 days. The key question now is: can TRX maintain its upward momentum?
Tron transaction volume exceeds $14 billion, contrasting with XRP
Yesterday, BeInCrypto reported on Tron hitting a new all-time high of $0.23, but this milestone was just the beginning of another rally. Earlier today, TRX surged to $0.44 before falling back to $0.39.
This explosive move came after Tron founder Justin Sun boldly claimed on December 2nd via X that TRX would become the next XRP, sparking speculation and excitement among investors. Following this, Santiment data showed that TRX trading volume increased to $14.67 billion.
Trading volume measures the level of buying and selling in the market and is an indicator of interest in cryptocurrencies. From a price perspective, rising volume and prices are bullish signals. Therefore, if both volume and price continue to rise, TRX may trend higher in the short term.
Moreover, the bull and bear market indicators measuring address activity with volume exceeding 1% also support this argument. For context, a bull market refers to addresses where the buying volume constitutes 1%.
On the other hand, bear market addresses have sold a similar amount of currency. When the number of bear markets exceeds that of bull markets, cryptocurrencies may face selling pressure. However, as the best-performing altcoin, Tron’s bull market has surpassed its bear market. If this continues, the price of TRX may rebound to $0.44.
Tron bull and bear market indicators.
TRX price prediction: temporarily hindered, value rising
On the daily chart, the TRX price encountered resistance at $0.43, causing it to drop to $0.39. However, the Money Flow Index (MFI) indicates that this pullback may be temporary.
The MFI measures the level of capital flow into cryptocurrencies. When the reading declines, it indicates selling pressure. However, in this case, it continues to rise, indicating that more liquidity is flowing into the TRX market and intensifying buying pressure.
Tron daily analysis.
If this situation persists, Tron’s price may rebound above $0.45. Additionally, in a highly bullish scenario, it could approach $1 and match the performance of XRP. On the other hand, if all profit-taking TRX holders decide to take profits, the price could drop to $0.33.