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Key Takeaways:
- TRON broke past the $0.274 resistance but quickly retraced following Bitcoin’s drop to $103.8K, bringing TRX back into its five-month trading range.
- Despite short-term weakness, TRX’s Sharpe Ratio above 1.00 and rising daily active addresses in 2025 indicate growing adoption and the potential for a bullish recovery.
TRON [TRX] briefly broke free from a five-month consolidation range at $0.274 earlier this month, buoyed by Bitcoin’s [BTC] sharp move toward $110K. However, the breakout was short-lived. A swift BTC pullback to $103.8K reversed TRX’s gains, sending the token back into its prior trading range.
Market conditions turned risk-averse following the Bitcoin correction, stalling TRX’s bullish momentum. On June 10, the Chaikin Money Flow (CMF) showed a healthy +0.08 reading, suggesting capital inflows and buyer confidence. However, the CMF has since turned negative, reflecting renewed selling pressure. The Accumulation/Distribution (A/D) indicator also highlighted growing sell volume without a clear directional trend, underscoring market uncertainty.
Currently, TRX is testing local support at $0.267 — a key demand zone. Whether this level holds will depend largely on Bitcoin’s ability to maintain support above the psychologically important $100K mark. A breach below that level could undermine altcoin sentiment across the board.
Despite short-term weakness, on-chain metrics hint at longer-term optimism. In a CryptoQuant Insights post, analyst Burak Kesmeci pointed to TRX’s Sharpe Ratio — a metric that gauges risk-adjusted returns — which stood at 8.36 at press time. While the ratio briefly fell below 1.00 on June 7, it recovered on June 11, signaling that a bullish phase may be taking shape. Historically, a Sharpe Ratio above 1.00 has marked the beginning of sustained uptrends, while values above 40 have indicated market overheating — a threshold TRX is still far from.
Adoption trends also support the bullish thesis. Daily active addresses have been rising steadily in 2025, reflecting greater user engagement. Although address activity spiked and sharply reset in early June, the broader trend remains intact. New address growth has been consistent in the 200,000–250,000 range, suggesting sustained demand.
While TRX has yet to reclaim $0.274 convincingly, fundamentals remain strong. A decisive BTC recovery could provide the momentum needed for another breakout, with TRX bulls watching $0.267 closely in the interim. Investors should stay alert for signs of renewed accumulation if market sentiment stabilizes.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
Also Read: Tron (TRX) Bullish Reversal Signals Rally Toward $0.50
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
