TRX Price Regains Bullishness: 15% Uptick In Cards?

Tron’s native coin TRX price is experiencing a demand resurgence since mid-January. This is indication that the bearish momentum observed since early December has since run its course, ushering a chance for bullish recovery.

Demand for TRX has been building up on the spot and derivatives markets. To put things into perspective, open interest was up by 23.24% to $285.88 million in the las 24 hours.

The bulls have been gaining traction since the start of this week. This was particularly evident in spot flows which were mostly positive for the last 3 days consecutively. An indication of strong buy back after the discount that TRX received in the first 2 weeks of January.

TRX experienced slightly over $47 million worth of spot flows in the last 3 days. A refreshing change considering that spot outflows were dominant in the first 2 weeks of the month.

Is a sizable rally on the cards for TRX price?

Robust demand is necessary for TRX to achieve a sizable rally in a short amount of time. That usually requires heavy accumulation especially from the whale and institution class of investors.

IntoTheBlock large holder net flows data revealed that whales shifted from negative to positive net flows between 19 and 20 January. In other words, TRX large holder accounts bought more TRX than they sold.

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Large holder net flows peaked at 77.44 million TRX on 20 January after pivoting from -90.25 million the previous day. The sudden shift confirmed a sizable bounce back.

However, the Monday uptick in bullish momentum from large holders was equivalent to about $23 million. Note however, that this was almost similar to the amount of BTC that whales purchased on 2 December. This was a just a day before TRX experienced the most explosive single-day bullish price action.

While TRX has not yet achieved an explosive uptick this week, the above observations underscore the fact that whales have been actively buying in the last 3 days.

TRX exchanged hands at $0.25 at press time, after a 14% uptick from its lowest price so far this week. Its next major resistance zones are within the $0.27 and $0.29 price levels. That means TRX could continue to rally for another 5% to 16% gain from its press time price point.

Tron celebrates new growth milestones

Organic demand has a significant impact on TRX long term value. The more the users on the Tron network over time, the higher the organic demand.

The total number of Tron account recently crossed the 285 million milestone. Although this figure might seem rather arbitrary, it highlights the ballooning number of users flocking into the Tron network.

The user growth milestone may not necessarily have a direct impact on TRX price action. Price action is mainly moved by the market forces. Nevertheless, the milestone may potentially boost investor confidence.