Is there a local fund on the horizon?

After Christmas, the cryptocurrency market turned red, with most assets suffering heavy losses. Tron (TRX) is not immune to the fall. Earlier this month, the asset hit a new peak and reclaimed the 10th spot by market capitalization, sparking a renewed sense of hope in the community.

But the latest pullback extended its losses. As a result, TRX has dropped over 43% from its recently set all-time high of $0.43 to the current price level of $0.25. However, the data points to the formation of a local fund soon.

TRX Near A Tipping Point?

CryptoQuant’s analysis of the TRX price chart revealed that the green trend, represented by the one-year moving average plus two sigma, could serve as a crucial support level during the current market correction.

Historically, this green trend has acted as a solid base during bull rallies, and it is expected to provide similar support, potentially marking a local bottom for the TRX price.

TRX chart. Source: CryptoQuant

Current green, purple, and blue trend levels are $0.23, $0.40, and $0.49, respectively. These levels are dynamic and will likely adjust upwards as interest and demand increase. As the market heats up, pay attention to purple and blue trends, which can act as resistance zones. If TRX price stays above the green trendline, it could signal the start of a new uptrend.

On the other hand, CryptoQuant warned that a drop below the green trendline could indicate a weakening bullish cycle. As demand strengthens, Tron price could target the purple and blue trend levels, with a breakthrough above the 0.40 level offering strong market confidence.

What’s next for Tron?

Earlier this month, TRX’s rally was fueled by speculation about the grayscale listing and Tron founder Justin Sun’s initiatives, including a $30 million purchase of WLFI tokens tied to Trum’s project and in his role as an advisor. Sun’s involvement with the “Comedian” artwork has also involved the community, leading to dominant effects for tokens like BAN and related projects.

Despite the rally’s latest pullback, experts point to a moderately favorable year for the asset. CoinCodex, for example, predicted that TRX could see a modest price increase of 2.93% to $0.264 on January 24, 2025. Sentiment remains neutral, while the Fear & Greed index reflects high optimism at 73 (Greed).

TRX has shown 50% green days and 17.17% volatility over the past month, indicating active market participation. Analysts see this as a good buying opportunity, with expectations for a near-term high of $0.268 on December 30, 2024.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

LIMITED OFFER for CryptoPotato Readers on Bybit – Use this link to register and open a FREE $500 position with any currency!