Tron (TRX) has been navigating a bearish trajectory, posting an 8.62% drop over the past month and a 1.47% decline in the last 24 hours. However, compared to the broader cryptocurrency market, this downturn remains relatively minimal. Strong fundamentals suggest that a potential price pump could be on the horizon, though selling pressure from the derivatives market poses a challenge.
Spot Traders Fuel TRX Accumulation
Despite TRX’s price slump, on-chain data suggests that bullish momentum is building. TRON recently surpassed leading blockchains like Ethereum, Solana, Bitcoin, and BNB Chain in revenue generation, recording $12.75 million in just seven days. Additionally, the total number of transactions surged by 2.2%, reaching 60.5 million.
According to Token Terminal, TRON also leads in blockchain fee generation, largely due to its booming stablecoin ecosystem, which currently boasts a market cap of $62.27 billion. The network’s active addresses have hit an all-time high of 127.5 million, highlighting increasing user engagement and adoption.
Exchange netflow data from IntoTheBlock further underscores TRX’s accumulation trend. In the past 24 hours, spot traders purchased 133.43 million TRX, valued at approximately $29 million. Such significant buy orders suggest strong confidence in TRX’s future performance, potentially paving the way for a bullish reversal.
Derivatives Market Selling Limits TRX’s Growth
While spot traders are fueling accumulation, derivatives traders appear to be taking a bearish stance. TRX’s open interest in the derivatives market has dropped by 3.38% to $156 million, signaling reduced participation from futures traders. Additionally, a decline in trading volume points to a decrease in speculative activity.
Further compounding TRX’s short-term bearish pressure, its funding rate has turned negative at -0.0086, indicating that short sellers are paying a premium. This suggests that futures traders are betting against a price surge, potentially limiting TRX’s upside momentum.
Also Read: Massive $21.4M TRON (TRX) Transfer to Binance Sparks Market Volatility – What’s Next?
If derivatives traders persist with sell-offs, it could create an opportunity for spot traders to accumulate TRX at a discount, setting the stage for a future breakout. Should this buying pressure continue, TRX might defy its current trend and register fresh bullish gains in the coming weeks.
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.
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.
