- TRON has formed a bullish double-bottom pattern after a decline, with a long lower wick indicating increasing buying pressure and the potential for a breakout.
- TRX skyrocketed by 104% on December 3rd, setting a new all-time high of $0.426 and pushing its market capitalization to a peak of $9.54 billion.
TRON (TRX), a decentralized blockchain-based operating system created by the Tron Foundation in 2017, aims to revolutionize the entertainment industry by enabling direct content sharing without intermediaries. Over the years, TRX has achieved significant milestones, including reaching its all-time high (ATH) of $0.449 on December 3, 2024.
TRX’s price surge to its ATH occurred under unusual circumstances, coinciding with TRON founder Justin Sun’s acquisition of “Comedian,” an artwork by Italian artist Maurizio Cattelan, for a staggering $6.2 million. This high-profile purchase attracted significant media attention, further fueling speculation and interest in TRX. While this event did not directly impact TRX’s price, it highlighted Sun’s continuous efforts to keep TRON in the public eye.
Price Decline and Market Adjustment
Following its peak in December, TRX experienced a sharp decline, losing 45% of its value in less than a week. The sudden drop led to market instability, and as TRX attempted to recover, it formed a descending parallel channel, where the price gradually decreased over time.
By February 3, 2025, TRX had hit a low of $0.221, testing the support line of the descending channel. However, a bullish hammer candlestick appeared, this is a key technical pattern often seen at the end of a downtrend. This pattern indicated that buyers were stepping in, suggesting a possible reversal and an upward price movement in the near future.
Currently, TRX is attempting to reclaim the midline of the parallel channel, a crucial level that often precedes a breakout. Several key technical indicators suggest a potential bullish reversal, this includes a double bottom pattern. For context, this pattern occurs when the price hits a low, rebounds, and then drops back to approximately the same low before bouncing again. The second low is significant because it demonstrates that bears failed to push the price lower, increasing the probability of an upward movement.
Additional support for a potential breakout comes from bullish divergences observed in key indicators such as the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD). The RSI, which measures the speed and change of price movements, suggests growing buying momentum. Meanwhile, the MACD, a trend-following momentum indicator that tracks two moving averages, has also signaled a possible upward shift.
If the anticipated breakout occurs, TRX could surge by 40% from its current price of $0.2289, reaching the $0.325–$0.355 range and providing traders with a potential opportunity for gains.
However, the risk of new lows following a relief rally remains, making it crucial for investors to stay cautious. Despite the volatility, TRON continues to maintain a strong presence in the cryptocurrency market, with a market capitalization of approximately $19.7 billion.
