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- Nearly 89% of TRX is staked, creating scarcity and bullish pressure.
- Futures data shows traders are heavily positioned for upside.
- Maintaining support above $0.331 is crucial for continued momentum.
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Tron’s [TRX] market is at a turning point. With nearly 89% of circulating tokens locked in staking, liquidity has become scarce, setting the stage for amplified price movements. This tightening supply supports bullish sentiment, but it also leaves the market vulnerable to sharp swings if large holders decide to unstake.
Staking Scarcity Creates Upward Pressure
The TRX supply squeeze has intensified since mid-year, with the majority of tokens now removed from active circulation. This scarcity has strengthened the token’s technical foundation, helping it maintain an ascending trendline that has guided the price since July.
Currently, TRX trades within a clear range — resistance at $0.355 and support near $0.331. A decisive breakout above resistance could propel prices toward the $0.40 region, while losing support may trigger short-term corrections.
Derivatives Traders Bet on Further Gains
Data from CryptoQuant shows that futures traders are increasingly backing TRX’s upside. The Cumulative Volume Delta (CVD) reveals a strong tilt toward taker buy volume, signaling that traders are leaning long. This buy-side dominance underscores market confidence, though it also increases sensitivity to any momentum loss.
If buying slows or profit-taking begins, prices could quickly retrace. But for now, the futures market is reinforcing bullish momentum, keeping sentiment constructive.
Positive Funding Rates Reflect Market Confidence
Across perpetual futures markets, TRX funding rates remain modestly positive at around 0.009%, meaning traders are paying to maintain long exposure. This consistent optimism, paired with limited liquidation risk, keeps the market tone cautiously bullish.
Still, if leverage builds excessively, it could trigger volatile swings. For now, the setup suggests TRX has room to extend gains without overheating.
Tron’s market dynamic reflects a classic balance between scarcity-driven optimism and liquidity-driven risk. As long as demand stays firm and staking remains high, TRX appears poised to hold its bullish footing. But any sudden shift in participation or unstaking could quickly test the resilience of this uptrend.
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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.
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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.
