TRON’s market cap exceeds $20 billion, reaching a new milestone

TRON (TRX) has reached a significant milestone, with its market capitalization surpassing $20 billion, marking an all-time high. The cryptocurrency experienced a remarkable 16% increase in the past 24 hours, pushing its price to $0.236 at the time of writing. This surge has been accompanied by a sharp rise in its daily trading volume, which has doubled to $2.3 billion.

This price rally is largely attributed to increased whale activity around TRON. Data from IntoTheBlock (ITB) reveals a dramatic uptick in large transactions, each worth at least $100,000. The number of these transactions rose from 244 to 722 on December 2, reaching a total value of $432 million. In addition, large holders accumulated over 76 million TRX on the same day. This surge in whale activity tends to create a sense of urgency among retail investors, triggering FOMO (fear of missing out) and potentially pushing the price even higher. As a result, TRX seems well-positioned for short-term price gains, though the heightened trading volume also points to the potential for increased price volatility.

On the flip side, the data suggests that investors might be gearing up to take profits. Between November 30 and December 2, TRON’s exchange net inflows shifted from a net outflow of 104 million TRX to a net inflow of 81 million TRX. This change indicates that larger investors could be preparing for a sell-off, which could cause FUD (fear, uncertainty, and doubt) in the market, leading to increased selling pressure from retail traders.

Additionally, the TRX Relative Strength Index (RSI) is currently above the 70 mark, suggesting that the asset is slightly overbought at its current price level. This could signal that TRX is due for a short-term correction before any further upward movement.

In summary, TRON’s market capitalization hitting $20 billion is a significant achievement, fueled by increased whale activity and broader market momentum. However, while the price action appears bullish in the short term, the elevated RSI and shifting investor sentiment hint that there could be some volatility ahead, especially if whales decide to cash out their holdings.