• At the time of writing, TRX is trading above the 200-day simple moving average (200-SMA), indicating a long-term uptrend.

• Token burning implies a deflationary mechanism for this altcoin.

Recently, TRON (TRX) recorded a slight price drop on the charts, from $0.1678 at the beginning of the month to $0.1654 - a decrease of 1.8%.

However, the market capitalization of the altcoin has increased by 0.59%, with trading volume over 24 hours rising sharply by 20.49% - a sign of growing interest from investors. These indicators, together, have highlighted sustainable optimism around the altcoin's ecosystem.

Notably, TRON, driven by strategic initiatives such as token burning, is designed to reduce supply and encourage long-term value growth.

Expert forecasts also maintain an upward trend, suggesting a logarithmic increase that could push TRON to a target of $1.11. The historical support level of $0.1635 has triggered an upward trend. A successful retest of this level will lead to more solid upward action, paving the way for a potential rise to $0.18 this week.

Technical indicators suggest a strong sustainable increase

In October 2024, TRON completed a major token burn, removing over 149.6 million TRX tokens from circulation. This amount is estimated to be worth around $25 million.

This burn is part of Tron's commitment to reduce token supply, promoting scarcity, which can positively impact price stability in the long term.

On the daily chart, the price of the altcoin has crossed the 200-SMA line since the beginning of August. This means that the position of the SMA line continues to reinforce the long-term uptrend for the altcoin.

Source: TradingView

The trading volume levels have been moderate, with no significant spikes at the time of reporting. This indicates a stable, less volatile environment for TRX traders.

The Alligator indicator with three lines (green, red, and blue) also seems to be converging, implying an accumulation phase. This configuration can be interpreted as a sign that TRX has been and is accumulating strength, likely preparing for the next move.

TRON holders are profiting, less than 1% are losing

At the time of writing, about 97.89% of all addresses holding TRX are 'profitable', indicating that these holders are making profits compared to their initial purchase price.

Only a small portion, 0.76% of addresses are 'losing money', meaning these holders are experiencing losses at the trading price of the altcoin at the time of reporting.

Meanwhile, 1.35% of addresses are 'breaking even' - a level where the purchase price is close to the current trading price of the cryptocurrency.

A high proportion of profitable addresses is a sign of strong market confidence in TRON, with the majority of investors benefiting from the recent price trend.

Source: IntoTheBlock

High liquidation levels around $0.165

At the time of writing, there seems to be a balanced distribution of long and short liquidation levels around the current TRX price of $0.165.

On the left, the short liquidation leverage has begun to accumulate significantly below $0.164. This is likely to increase if the price decreases. This means that short positions are using strong leverage at these levels.

See more: Tron replaces oracle providers with Chainlink

Source: Coinglass

Conversely, on the right side, the long liquidation leverage has increased above $0.166, with leverage significantly rising above $0.170.

This concentration indicates where long positions may face liquidation if TRX prices rise sharply.

Stay tuned for the latest updates.

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