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Tron (TRX) Price Heatmap: Is a Local Bottom on the Horizon?
The cryptocurrency market has been in turmoil since the post-Christmas period, with most assets suffering significant losses. Tron (TRX), one of the more prominent cryptocurrencies, is not immune to this downturn and has lost over 43% of its value from its recent high of $0.43 to its current price of $0.25.
Despite the bleak outlook for the crypto market, a local bottom could be forming on the horizon for TRX. A heatmap analysis conducted by CryptoQuant indicates that the one-year moving average plus two sigma (the green trend) may serve as a crucial support level during this correction. The company warns that if TRX’s price stays above this line, it could signal the start of a new uptrend.
Historically, this green trend has acted as a strong foundation for bull rallies and is anticipated to provide similar support in the current market environment. The price heatmap reveals that these levels are dynamic and will most likely adjust upward with increased interest and demand.
It’s crucial to monitor the purple and blue trends at $0.40 and $0.49, respectively, which could serve as resistance zones during a potential recovery. If TRX stays above the green trend line, a new upward trajectory could be initiated.
In contrast, if the price falls below this critical level, it might indicate weakening momentum in the bull cycle.
The article also highlights that the Tron founder’s recent initiatives have fueled speculation about the asset’s future performance. Justin Sun recently acquired $30 million worth of WLFI tokens connected to Tron’s project and took on an advisory role. Furthermore, his involvement with the artwork “Comedian” has garnered significant interest from the community, sparking ripple effects for tokens such as BAN and related projects.
Despite the recent downturn, cryptocurrency analysts expect a moderate year ahead for TRX, with predictions of a modest 2.93% increase in value to $0.264 by January 24, 2025. The Fear & Greed Index reflects high optimism at 73 (Greed), indicating market participants’ current sentiment.
TRX has demonstrated remarkable activity over the past month, boasting 50% green days and 17.17% volatility, which could be interpreted as active market participation. Analysts view this turbulence as an excellent buying opportunity, with expectations of a short-term peak at $0.268 on December 30, 2024.
In summary, while the cryptocurrency market remains uncertain, the data suggests that TRX may have reached its local bottom and is likely to initiate a new uptrend if it stays above the critical green trend line.
Source: cryptopotato.com
