Despite TRX Price Dip, Investor Confidence Is High: Can It Rise 2x?

• The number of long-term TRX holders has surged, demonstrating faith in TRON’s future.
• TRX price movement is less correlated with Bitcoin, indicating its own unique dynamics.
• Positive technical indicators, such as TRX price being above the 50-day EMA, support a bullish bias.

Tron (TRX) has established itself as a standout cryptocurrency. The TRX price has consistently outperformed its peers.

Since November 2022, the TRON token’s price has maintained an impressive uptrend. It outperformed many major cryptocurrencies during the past 655 days.

Following a breakout from a descending triangle in 2022, TRX crypto has surged by over 270%. In August 2024, the price approached its 2021 highs but couldn’t sustain the bullish momentum due to recent market volatility. That led to a continuous decline.

The 2021 high proved to be a solid resistance, causing a 12% drop in September. Recently, the TRON price fell below the 20-day EMA on the daily chart. It heightened investor concerns.

The main question is whether this dip in September will intensify investor fears and lead to further declines or become a “buy-the-dip” opportunity.

How Many Holders Of TRX Crypto Are in Profit, Per On-chain?

The recent decline in the TRX price has sparked concerns about the long-term viability of investments. However, despite the September drop, most addresses remain profitable. It shows that investors are not overly worried, and the project’s viability appears solid.

According to an on-chain research platform, TRX crypto has experienced a significant increase in long-term holders (HODLers) over the past few months, demonstrating strong demand.

When writing, the number of long-term holders has surged to nearly 90 million. It reflected growing confidence among TRX investors committed to holding the asset for the long term.

Furthermore, analysis shows that over 94.44% of TRX holders are in profit at current price levels. This high profitability is a bullish signal. It suggests that most investors have gained from their investments and are likely to continue holding. The only ones facing losses are the latecomers or short-term traders, accounting for 3.85% of the addresses.

Additionally, the TRX price tends less towards BTC’s movement, as it has a price correlation of just 0.45. The factor driving its growth is the seamless investor’s interest in the project. In the last week, the transactions that were greater than $100K amounted to $638.74 Million.

Price Action Perspectives of TRX Price

This current pullback might be a cooling-off period for TRX following a significant rally in August. The launch of the Sunpump memecoin generator drove that raly.

Such retracement levels are often viewed as healthy during established uptrends. They allow buyers to regain bullish momentum. If the support at $0.1438 holds, the TRX price could rebound and challenge the $0.155 resistance. It might also rally to $0.17 or beyond.

On the downside, if sellers manage to breach the 50-day EMA, they might target breaking the critical support at $0.1438. Should this support level fail, the price could drop further to around $0.126.

Disclaimer

This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.