The cryptocurrency market has been underperforming since the start of the week, with Bitcoin still trading around $89k.
However, TRX, the native coin of the Tron ecosystem, has tapped the $0.30 level after rising 3% over the last 24 hours.
The rally makes it the best performer among the top 10 cryptocurrencies by market cap.
The bulls would be targeting the $0.32 resistance level as TRX’s structure switched bullish earlier this week.
Positive on-chain and derivatives metrics could push TRX’s price higher
TRX is currently trading at $0.30, outperforming the other major cryptocurrencies.
The positive performance comes amid improved on-chain and derivatives data.
CryptoQuant’s summary chart currently shows that TRX has a positive outlook.
Tron’s spot and futures markets show large whale orders, cooling conditions, and buy-side dominance, suggesting that its price could rally higher in the near term.
Furthermore, data obtained from DeFiLlama reveals that TRX’s stablecoin total supply has risen since the end of December, reaching a new record high of $84.63 billion on Wednesday.
The stablecoin supply now hovers around $84.41 billion on Friday. The growing stablecoin supply and value increase on TRX add further bullish confluence to TRX as they boost network usage and attract more users to the broader ecosystem.
The derivatives market also shows that traders are bullish on TRX’s near term performance.
Coinglass’ long-to-short ratio for TRX stood at 1.36 on Friday, nearing its highest level in over a month.
This ratio staying above one indicates that more traders have opened long positions compared to shorts.
TRX eyes the $0.32 resistance level
TRX’s price broke above the falling wedge pattern last week and added 5% to its value.
However, it gave up most of its gains on Tuesday as the broader cryptocurrency market recorded losses.
TRX retested the $0.294 support level on Wednesday and has added 3.5% to its value since then.
TRX is now trading above the daily support at $0.29 and the 50-day, 100-day, and 200-day EMAs.
If the bullish trend continues, TRX could extend the rally toward the October 22 high of $0.32.
The technical indicators suggest that TRX could surge higher in the near term.
The Relative Strength Index (RSI) on the 4-hour chart is 58, up from the neutral 50 level, indicating bullish momentum is gaining traction.
The MACD lines are also approaching the neutral zone, suggesting that buyers are regaining momentum.
The MACD lines need to cross into the positive territory for a sustained period to enable TRX to rally higher.
However, if TRX corrects, the bears could push its price towards the daily support at $0.29.
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