Tron [TRX] is once again making headlines as it recently hit a new all-time high (ATH) as strong trading activity supported the development.

After Justin Sun said TRX is like XRP, interest and speculation in altcoins followed. TRX has risen 98.86% in the past week. This surge in TRX price coincides with institutional and retail interest, and TRX futures open interest rose 43% to $184.82 million. However, the RSI is 77, overbought, and may fall back in the short term as some investors may take profits after the sharp rise.

With this new ATH, TRX has surpassed Avalanche [AVAX] to take the 10th spot! So is a pullback coming soon?

Justin Sun’s “next XRP” comment helps Tron hit ATH!

Justin Sun posted on social media that TRX is the "next XRP". This has generated a lot of interest in the cryptocurrency community, especially with XRP's recent rally, which has benefited from legal updates, ETF filings, and positive news about Ripple.

Sun’s post included “TRX = XRP,” which not only caught the attention of the Tron and XRP communities, but also the broader market speculation that TRX would follow XRP’s path. XRP was one of the best performing assets last month, with gains driven by positive legal updates, institutional interest, and rumors of Gary Gensler’s resignation.

Sun’s comparison made TRX a strong player in the altcoin market, and many saw it as a trigger for the upward trend. In the past 24 hours alone, TRX surged more than 67%, reaching a high of $0.45, successfully surpassing AVAX to become the tenth largest cryptocurrency by market capitalization.

Will TRX continue to rise?

Still, the token’s derivatives metrics look positive. Data from Coinglass shows that Tron’s funding rate has risen. A rising funding rate for a cryptocurrency indicates market optimism, with traders anticipating higher prices.

This is because traders who believe that prices will rise are willing to pay a premium to maintain their long positions.

The technical indicator On Balance Volume (OBV) is rising, showing that volume on days with positive price movements is greater than on days with negative price movements.

TRX’s MACD also shows a clear bullish edge, suggesting that the price will continue to rise. However, Tron’s relative strength index (RSI) has entered the overbought zone.

This could prompt investors to sell, which in turn drives down the price of TRX.

Interestingly, as TRX reached new highs, its network activity also saw an upward trend. Data from Artemis shows that TRX’s daily active addresses have increased dramatically.

A similar growth trend is also seen on the daily transaction chart. This means that the new ATH was achieved on the back of increasing network activity.

Where will the TRX price go?

With the recent price movement of TRX, it can be seen that the price is in an upward trend and is currently at $0.3242. The sudden rise in recent days further confirms the strong bullish trend in the market.

From a technical perspective, it is noteworthy that TRX has completed a golden crossover, where the 13-day average has risen above the 49-day average.

This is a buy signal, indicating that TRX could continue to rise if the momentum holds. However, the relative strength index (RSI) is currently at 89.60, which means that TRX is currently overbought.

Since the RSI is overbought, traders could expect some corrective pullbacks, which could provide new entry points for investors heading toward the next leg up in the bull cycle.

Analyzing the possible resistance and support levels for TRX, the nearest resistance level is around $0.45, which seems to be a strong barrier that the coin’s price needs to break through.

Once this resistance level is broken, a potential price discovery phase will begin, and the coin price will rise and seek new highs.

On the other side, support lies at $0.35, a level that was touched earlier this year. A pullback to this level will indicate consolidation, which could provide a good opportunity to enter the market on dips.

Therefore, if the price fails to hold at this level, we could look for support just below $0.28, which should provide further support.