- Transaction value has climbed to a significant high on the TRON network, with daily transactions crossing a new threshold
- TRX could see a breakout rally to $0.32, with just one key obstacle ahead
TRX, at the time of writing, was still on a path of consolidation, with the altcoin maintaining its trajectory for weeks despite recent milestones. This was evidenced by the altcoin’s price action, with the crypto falling by less than 1% in 24 hours, after recording a weekly hike of just over 3%.
This might change soon though. In fact, TRX might exit this consolidation phase for the first time in weeks soon. Especially on the back of several market metrics flashing green and hinting at the possibility of an incoming rally.
New billion dollar milestone
According to CryptoQuant, the TRON blockchain has now hit a new milestone, with $10 billion in transaction value processed so far.
This surge in transaction value was followed by an uptick in daily transaction count, with the same climbing to 8.4 million on the charts.
Source: CryptoQuant
Here, it’s worth pointing out that this milestone is unique to a select group of blockchains, placing TRON among the top players in the market.
Now, news of this nature tends to have a positive effect on the blockchain’s native token. That is why AMBCrypto analyzed TRX to examine how the market reacted to the development and what to expect from the asset in the near term.
Sellers and buyers enter the arena
On the back of this milestone, large investors holding significant amounts of TRX have started selling.
At the time of writing, these large traders had sold 26.83 million TRX worth approximately $6.5 million, with the same evidenced by exchange netflow data from IntoTheBlock.
Source: IntoTheBlock
According to the same, 13.39 million TRX have been purchased, valued at $3.2 million at press time.
This opposing movement in the market might offer us some insight that buying activity could resume soon.
Source: IntoTheBlock
The reason is that large-holder sell-offs typically trigger market-wide declines. However, in this case, the opposite occurred – Potentially indicating temporary profit-taking by large holders.
If spot traders continue to buy TRX and large holders resume accumulation, the asset could soon see a significant price pump on the charts.
TRX targets new level
As per the altcoin’s daily chart, TRX could soon be aiming for the $0.32-level. Especially since it seemed to be trading within an ascending triangle pattern.
Such a pattern is generally viewed as a consolidation phase ahead of a breakout in the market.
Source: TradingView
If TRX breaches the resistance level of the pattern, it could rally to the previously mentioned target.
Further analysis also revealed that TRX faces its most significant resistance level around the $0.25-zone. According to the “In/Out of the Money Around Price” (IOMAP), a large cluster of sell orders exists at that level – Something that could impede price growth.
Source: IntoTheBlock
If buying momentum isn’t strong enough, TRX may fall upon approaching this zone.
Hence, if a rally to this level is driven solely by spot traders, TRX could face a pullback on the charts. However, if large traders also participate, TRX could gather the necessary momentum to break through.
