- Tron (TRX) is predicted to extend its bullish run to $0.14 once bulls fail to seize control over the market.
- Tron-based meme coins appear in “reds,” following the bearish direction of the broad market.
Tron (TRX) defied the broad market pullback to test an all-time high price of $0.170 on August 25 before taking a nosedive to $0.156 in a 6% decline on Monday, September 2.
According to analysts, TRX is currently showing a sign of bearish extension as its Relative Strength Index (RSI) indicates a weak market momentum, contrary to the reading on August 25. Per our analysis, the asset could target its previous weekly support at $0.1425 once this trend continues.
Confirming this analysis, Coinglass’ OI-Weighted Funding Rate data on TRX is currently showing a reading of 0.033%, indicating a negative rate. This explains why shorts are paying longer. Generally, this reading signifies bearish sentiment and potential downward pressure.
The majority of TRX Holders are in Profit
According to Coinglass’s data, Binance TRX’s long-to-short ratio currently stands at 0.43. This reading indicates that traders are anticipating a fall.
On the other side, analysts believe that there could be a market shift to the bullish zone if the TRX’s daily candlestick closes above $0.170. This validation could offset the bearish outlook and lead to a 6% surge while targeting its April 17, 2021, high at $0.180.
Regardless of the current bearish state, IntoTheBlock data discloses that about 97.5% of TRX addresses are in profit. Specifically, 140.5 million addresses hold 82.76 Trillion TRX. However, 406.23k addresses currently holding 120.92 Million are in loss.
Tron’s ecosystem has witnessed bullish on-chain activities, with its Total Value Locked (TVL) rising from $6.8 million to $8.17 million since last month. This indicates growing investor confidence and greater adoption of Decentralized Finance (DeFi) services amid the bearish outlook. Confirming our recent publication, the total number of transactions processed has also reached an all-time high of over 8.1 billion.
Is Tron Memecoin Hype Over?
Tron meme coins have enjoyed massive attention in the past few weeks as Justin Sun’s SunDog made a groundbreaking entry and dominated the broad market with impressive growth. Similarly, Tron Bull recorded about 4000% in just a single day a few days after launch. According to CNF, an investor had his $1,200 investment in BULL turned into $10 million in just three days.
However, the hype around the meme ecosystem on Tron seems to be fading out as DOG records a 19% fall in the last seven days and a 70% decline in the last 90 days. Tron Bull has also declined by 10% in the last 24 hours and 33% in the last seven days. SunCat, which is still enjoying some 11% gain in the last 24 hours, has fallen by 34% in the last seven days.
According to our data, the ongoing bearish price action is a reflection of the broad market movements, as Dogecoin has declined by 8.8% in the last seven days and 11.4% in the last 30 days, trading at $0.09.
Shiba Inu has also been down by 7% in the last seven days, trading at $0.0000135.
