CryptoQuant Analyst: TRX Price Could Explode Soon

As the cryptocurrency market has shown a minor uptick heading into 2024, an analyst from CryptoQuant, Joao Wedson, has pointed out that TRON (TRX) could be one of the altcoins poised for a significant surge. On December 31, TRX traded at approximately $0.2565, marking a 2.7% increase. This price movement reflects the general positive trend seen across the top 10 cryptocurrencies, with Bitcoin, Ethereum, and XRP all also in the green.

TRX has demonstrated impressive growth over the past year, rising by 140%, suggesting strong underlying momentum. Wedson attributes this potential for further gains to a combination of key technical indicators, including the Price Drawdown from All-Time High (ATH) and significant technical support levels. These metrics, Wedson argues, reveal a well-structured technical behavior for TRX, which could prove attractive for both short-term traders and long-term investors.

The Price Drawdown indicator tracks the distance of a coin’s current price relative to its all-time high. Wedson notes that TRX has managed to maintain a solid price floor above a key trendline that dates back to 2019, which has served as a strong support during accumulation periods. Each time the price has approached this line, TRX has bounced upward, further strengthening the case for a potential rally.

Wedson explains that this consistency suggests TRX has developed a well-structured technical setup, indicating that the coin is both stable and resilient. As a result, it is increasingly seen as an attractive option for investors looking for reliable opportunities in the cryptocurrency market.

In the past two years, the Price Drawdown indicator for TRX has been in a descending pattern, signaling that the previous periods of bearish sentiment have become less severe. The recent trends suggest that the coin has been “cutting down the level of bearish pain,” which could imply that the worst of the downturn is over, paving the way for a possible upward trajectory.

With TRX currently hovering near the trendline support, Wedson identifies this as a potential entry point for bullish investors. The coin’s consistent bounce off this trendline during accumulation periods suggests that there could be a strong upside potential if TRX manages to hold above this critical support level.

The coin reached its all-time high of $0.4407 on December 4, representing a 40% drop from that peak. Despite this pullback, the technical indicators suggest that TRX could soon begin another leg up, especially if the support level continues to hold. For traders and long-term holders, this trendline offers a potential strategic point to enter the market, which could result in strong returns if the price continues its recovery and moves toward new highs.

TRX has experienced significant growth in the past year, and with current technical trends aligning, many believe that the altcoin has the potential to see a massive price increase. As it remains above its important support trendline, TRON’s technical setup appears bullish, indicating that the altcoin may soon break free from the downward pressure it faced in the past. Given the consistency of this trend and the diminishing bearish pressures, TRX could be on the verge of an explosive price movement that would reward both short-term traders and long-term investors alike.

If TRX maintains its current momentum and continues to show bullish technical behavior, it could be well on its way to revisiting its all-time highs. For crypto enthusiasts, the outlook for TRX remains optimistic, making it a coin to watch closely in the coming months as the market heads into 2024.