Key Insights
- The Tron cryptocurrency rallied by as much as 12% on Tuesday, after a major announcement from Tron Founder, Justin Sun.
- Sun hinted at a possible collaboration between Solana and the Tron foundation in a recent tweet via X (formerly Twitter).
- TRX has retraced most of its gains since this rally. However,hope remains for a stronger rally in the future.
- TRX still faces resistance somewhere around the $0.24 level, and a move towards $0.27 could result from a breakout above this zone.
- Funding rates and open interest is improving for Tron so far, showing a great deal of investor confidence.
Tron has been making waves in the crypto space lately. The cryptocurrency rallied by nearly 12% earlier in the week, before experiencing a slight dip to $0.23.
This surge in the cryptocurrency’s price was fueled by a major announcement from Tron founder, Justin Sun.
Said move, which involves an incoming integration of TRX with the Solana blockchain has sparked enthusiasm among investors and traders.
Is Tron set for a possible breakout towards new highs?
Justin Sun’s Announcement
Justin Sun took to X (Twitter) on Tuesday this week, to reveal that Tron’s TRX token will soon be available on the Solana blockchain.
This announcement sent ripples throughout the crypto community, and led to an immediate 8% jump in the cryptocurrency’s price.
The integration with Solana is expected to bring in several benefits, including interoperability and faster transactions.
TRX will gain exposure to Solana’s fast-growing ecosystem and gain more utility across different blockchains.
Moreover, Solana’s high-speed and low-cost infrastructure is expected to improve the efficiency of TRX when it comes to transaction.
Finally, TRX could tap into Solana’s user base and see higher liquidity within the defi and NFT markets.
Tron Price Outlook—Bulls Eye the $0.27 Resistance
Soon after the announcement from Sun on Tuesday, TRX found strong support around the 200-day EMA around $0.21 and quickly rebounded.
However, the cryptocurrency still faces resistance somewhere around the $0.24 level.
This means that the bulls have one more hurdle to cross, and a move towards $0.27 could result if TRX can break and sustain a position above this resistance.
The RSI on the daily chart currently sits around the 52 mark, which shows that the momentum is leaning towards the bullish side.
The MACD is also showing signs of an incoming bullish crossover, indicating that the buying pressure could be mounting.
If TRX fails to hold support around $0.21, it could test the December low of around $0.2.
On the other hand, the current outlook for Tron shows that buyers are stepping in, and might be able to prevent further decline.
Mixed Market Sentiment—Can TRX Sustain Its Rally?
Despite the recent gains on Tron, the market appears divided on whether the uptrend can be sustained.
The cryptocurrency is currently trading near the 0.236 Fibonacci retracement level, which is a critical support zone.
In essence, a clear breakout above the $0.22 zone could confirm the bullish momentum and set the stage for a rally towards $0.27 (where the 0.382 Fib level sits).
On the other hand, if the selling pressure mounts, TRX could struggle to maintain its position and lead to a revisit of the $0.15 range.
Can The Solana Integration Be What TRX Needs?
The collaboration with Solana comes at a very important time for Tron, especially as it makes move to expand its reach and use cases.
This partnership currently has no confirmed aspects to it.
However, it is likely to include things like cross-chain interactions, which will allow TRX to move freely alongside Solana-based assets.
This means that TRX will be extensively used in Solana’s booming meme coin and DeFi applications.
Sun’s vision for TRX on Solana is expected to bring more efficiency to the Tron ecosystem.
The announcement has already led to an increase in trading activity, with CoinMarketCap showing a 25% surge in TRX’s 24-hour volume.
This renewed interest could provide the momentum required for another rally to the upside.
OnChain Indicators Show Signs Of Health
According to data from Coinglass, the funding rates on TRX had been negative throughout March.
This metric hit multi-year lows on 17 March as illustrated by the snapshot.
However, soon after this massive dip, TRX funding rates are back in the green zone.
The cryptocurrency’s open interest is also recovering so far, after hitting a $157 million low on 12 March.
This indicates that investors are opening more and more TRX positions in the futures market and is a major sigh of confidence.
Will TRX Breakout to New Highs?
The Tron-Solana collaboration has injected fresh optimism into the cryptocurrency’s price action.
While the short-term resistance currently sits at around $0.24, a successful breakout above this zone could lead the way towards the $0.27 zone and beyond.
Technical indicators on the daily chart show a bullish momentum. However, the market’s uncertainty is another major factor.
Investors and traders are advised to keep an eye out for TRX’s price movement in the coming days.
If the bulls are able to sustain the buying pressure, Tron’s price could enter a new phase of growth and even hit new highs over the coming weeks.
