Tron [TRX] is making headlines again as it recently hit an all-time high (ATH), supported by strong trading activity.
With this new ATH, TRX is just one step away from entering the top 10 rankings. Will TRX surpass Avalanche [AVAX] to claim the tenth spot, or will it face a correction first?
Tron hits ATH!
Last week, Tron bulls pushed the token's price up over 28%. In just the past 24 hours, TRX surged over 16%, reaching an all-time high of over $0.234.
Currently, the market cap gap between TRX and AVAX is about $1 billion. If TRX continues to rise, it could surpass AVAX to become the tenth-ranked cryptocurrency by market cap.
Will TRX continue to rise?
According to data from Santiment, TRX's trading volume surged significantly with its price. The increase in volume during the bull market further reinforced the upward momentum.
The recent price increase has also positively impacted the token's social metrics. For example, its social dominance remains high, reflecting TRX's popularity in the crypto space.
However, despite reaching ATH, the weighted sentiment for TRX declined shortly after—indicating that bearish momentum is rising.
Nevertheless, the derivatives indicators for the token still look optimistic. Coinglass data shows that Tron’s funding rate has increased. An increase in the funding rate for the cryptocurrency indicates market optimism, with traders expecting prices to rise.
This is because traders who believe the price will rise are willing to pay extra to maintain their long positions.
The On-Balance Volume (OBV) technical indicator shows an increase, indicating that the trading volume on days with positive price movements is greater than on days with negative price movements.
The MACD for TRX also shows a clear bullish advantage, indicating that prices will continue to rise. However, Tron's relative strength index (RSI) has entered the overbought territory.
This may prompt investors to sell off, thereby lowering the price of TRX.
Interestingly, as TRX reached new highs, its network activity also showed an upward trend. Data from Artemis indicates a sharp increase in TRX's daily active addresses.
A similar growth trend also appears on the daily trading chart. This means that the new ATH was achieved with the support of increasing network activity.
