- Whale accumulation and rising network activity suggest a potential TRX breakout, but declining lending TVL and persistent sell pressure raise caution.
- For TRX to escape its long-term range, it must decisively flip $0.29 into support with strong buyer momentum.
Rising on-chain activity and whale accumulation fuel hope—but sell pressure and TVL decline tell another story
Whale Accumulation and Network Utility Hint at a Bullish Breakout
TRON (TRX) has been flashing mixed signals recently, but there’s growing optimism on the back of two powerful trends—whale accumulation and rising network usage. Since late 2024, TRON’s gas usage ratio has steadily climbed, mirroring TRX’s price recovery. Historically, such utility spikes have aligned with bullish moves, pointing to heightened investor engagement.
Additionally, data from IntoTheBlock shows that large wallet holders have increased their TRX holdings by over 10% in the past month, while mid-tier investors added a staggering 41%. These are classic signs of strategic positioning ahead of a potential breakout.
Also read: PENGU Price Jumps 11% — Is a Breakout Toward $0.015 Coming Soon?
Lending TVL Crash Sends Warning Signs to TRX Bulls
Despite these bullish undercurrents, there’s reason for caution. TRON’s lending protocols have seen a steep $2 billion drop in total value locked (TVL) over the last two weeks. This decline is especially alarming as it contrasts with the rising price of TRX. Historically, such outflows hint at weakening market confidence or a shift in capital allocation—both red flags for sustainability.
Sell-Side Pressure Could Derail TRX Momentum
Compounding the concern is the growing dominance of sell orders in TRX’s taker volume. Market sells have consistently outpaced buys, suggesting potential distribution rather than accumulation. In previous cycles, similar sell-skewed volume trends have led to failed rallies and swift retracements. Without a decisive shift in buyer strength, the ongoing rally may fizzle out before it breaks key resistance levels.
Key Resistance in Focus: Is TRX Ready to Break Free?
TRX is currently trading around $0.288—just below its critical resistance at $0.29, a level it hasn’t convincingly breached in months. The Relative Strength Index (RSI) sits near 65, a zone typically associated with bullish momentum but also caution. A clean breakout above $0.29 with strong volume could push TRX toward new highs. However, failure to flip this level into support may trap the altcoin in its long-standing range between $0.25 and $0.29.
TRX’s price action is at a critical juncture. While whales and growing network activity hint at a breakout, falling lending TVL and taker sell pressure could throw a wrench in the works. For bulls to take control, TRX must decisively break above $0.29 with solid backing from buyers—otherwise, another rejection may be in store.
