Tron (TRX) Prepares for Another Rally as Long-Term Holders Rise and Buying Pressure Increases

While most cryptos faced massive declines over the last week, Tron's [TRX] performance was commendable as its weekly and daily charts remained green.

Despite the overall crypto market downturn last week, Tron's (TRX) price action remained positive with both weekly and daily charts showing gains.

This price performance was accompanied by another development that hinted at a possible further price increase.

CoinMarketCap data showed that top cryptos like Bitcoin (BTC) and Ethereum (ETH) both registered double-digit drops last week.

However, TRX managed to eke out a slight price increase during the same period. The last 24 hours saw a more positive price movement, with the token’s value increasing marginally.

At the time of writing, TRX was trading at $0.1289 with a market capitalization of over $11.235 billion, ranking it 11th among all cryptos.

A deeper look at IntoTheBlock's data revealed that longer-term TRX holders, defined as those who have held the token for over a year, saw an increase in their holdings.

IntoTheBlock data showed that there were over 82 million longer-term holders. This signaled investors' optimism for TRX with hopes pinned on a further price increase in the coming days.

IntoTheBlock also tweeted about the buying activity, highlighting that the token saw another day of exchange outflows.

According to the tweet, over $13.1 million in TRX was withdrawn from exchanges in the past 24 hours, marking the largest exchange outflow in a month, signaling accumulation.

As mentioned earlier, buying pressure on TRX increased, which usually leads to a price hike.

To assess the possibility of a bull rally further, we planned to analyze other data sets. Our analysis showed that TRX's weighted sentiment remained high last week.

This indicated that bullish sentiment around the token was dominant in the market. Its funding rate also dropped.

Generally, prices tend to move in the opposite direction of the funding rate. A glance at Coinglass' data revealed another signal.

Tron's long/short ratio also improved, indicating that there were more long positions in the market compared to short positions.

The technical indicator Relative Strength Index (RSI) also saw an uptick. Furthermore, the Chaikin Money Flow (CMF) also depicted a similar trend, suggesting a higher probability of a continued price increase.

However, the MACD favored the sellers, indicating a potential bearish crossover.

Our analysis of Hyblock Capital's data showed that if TRX remained bullish, it could first reach the $0.131 mark.

A successful breakout above this level could see the token hit $0.14 in the coming days.

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