TRX Faces Breakdown Risk — Tron Price Pressured by Falling Demand and Outflows
Tron (TRX) faces sustained selling pressure as its price falls below major averages and technical indicators signal bearish momentum. Trading at $0.2830, it risks breaking its key support level at $0.2764, with further potential declines to $0.2632 or $0.2397. Tron’s Total Value Locked (TVL) dropped 6.32% in 24 hours to $4.8 billion, reflecting shrinking demand and reduced participation in its DeFi ecosystem. Additionally, open interest in TRX futures fell by 4.48%, indicating lower speculation and decreased risk appetite among traders. Indicators like RSI, MACD, and Chaikin Money Flow confirm weak demand and ongoing sell pressure, while resistance levels near $0.2967 and $0.3029 suggest hurdles for a recovery without significant buying support. Short-term bearish momentum persists without signs of reversal.
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Tron Faces Consistent Selling Pressure
Tron demonstrates steady selling pressure as both on-chain activity and derivatives market signals weaken. The Total Value Locked (TVL) has fallen significantly, indicating a decline in user engagement. Additionally, technical metrics reveal diminishment of momentum, with price below major averages.
Price Action and Key Support Levels
On Tuesday, Tron (TRX) traded at $0.2830, continuing its decline after a 5% drop on Monday. The token is currently nearing a key support level at $0.2764, which could be essential for determining its short-term trend. If broken, new targets at $0.2632 and $0.2397 might come into play, highlighting the potential for further bearish momentum.
Declining On-Chain and Derivatives Activity
According to DeFiLlama, Tron’s Total Value Locked (TVL) dropped by 6.32% within 24 hours, falling below the $5 billion mark to sit near $4.8 billion. This suggests persistent withdrawals from Tron’s DeFi ecosystem and declining engagement among participants. Meanwhile, open interest in TRX futures also fell by 4.48% to approximately $291 million, suggesting traders are reducing risk exposure and speculative activity is declining.
Weak Technical Indicators Highlight Bearish Momentum
Technical analysis suggests that sellers have strong control over the market. The current price remains below the 200-day Exponential Moving Average (EMA) at $0.3029, while the 50-day EMA has crossed under the 100-day EMA, forming a death cross, a traditionally bearish signal. The Relative Strength Index (RSI) has dropped to 26, indicating an oversold environment, while the MACD indicator has crossed below its signal line for the third time since October, confirming mounting sell pressure.
Additional Bearish Indicators
The Chaikin Money Flow (CMF) is at -0.09, well below the zero line, showing a steady outflow of capital and weak buying interest. Further, the Parabolic SAR dots above the price candles indicate a sustained downward trend. Together, these metrics underscore low investor confidence and limited recovery prospects in the near term.
Potential Bounce and Resistance Levels
If Tron manages a short-term bounce from the $0.2764 support level, resistance may emerge at $0.2967 and the 200-day EMA around $0.3029. Overcoming these levels would require significant bullish momentum and volume support to confirm a potential trend reversal. Without strong buying pressure, upside may remain limited, leaving sellers in control.