Foreign media reports that TRX has fallen from around $0.38 to around $0.34 in the past three trading days, a drop of nearly 10%. This correction occurred after its strong performance in May, and news related to Justin Sun has also significantly weakened market sentiment.
Callback and news overlap
The article argues that this round of decline was mainly driven by two factors. First, after the significant gains in the previous period, some funds chose to take profits; second, reports surrounding Justin Sun and his affiliated trading platform HTX triggered a new wait-and-see attitude among traders.
The report mentions that the British government has reportedly imposed sanctions on HTX, an organization associated with Justin Sun, citing allegations of supporting Russian-related activities. As a result, the narrative surrounding TRON has come under pressure, and market risk appetite has cooled accordingly.
$0.34 to $0.35 becomes a key support level
From a technical perspective, the article describes this decline as a pullback to the existing uptrend, rather than a confirmed trend reversal. TRX has been in an upward structure since early February, with consistently higher lows, including a double bottom pattern around $0.27 that fueled the subsequent rebound.
After encountering resistance in the $0.37 to $0.38 range, TRX entered a period of consolidation and has now returned to the $0.34 to $0.35 area. The article argues that this range is important for two main reasons.
- This is near the starting point of the last breakout.
- This also coincides with the upward trend line that has lasted for several months.
If buying pressure holds this level, TRX may stabilize at lower levels before attempting to return to $0.36 and retest resistance near $0.38. If support breaks, the price could fall further to the $0.31 to $0.32 area.
The hype surrounding derivative products has cooled down.
The article also noted that speculative fervor in the TRX derivatives market has slowed after the pullback. Latest data shows a significant decrease in both TRX futures trading volume and open interest over the past 24 hours, indicating reduced trader participation.
The decline in open interest typically indicates a contraction in leveraged positions, rather than continued betting on a rapid short-term rise. However, options trading volume has increased significantly. Based on this, the article concludes that some traders may be hedging against increased volatility or positioning themselves for the next round of substantial price swings.
Overall, TRX has remained relatively strong among large-cap altcoins in recent months, but this pullback has pushed the price to a more sensitive level. Its future trajectory depends on whether the support level around $0.34 holds and whether news related to Justin Sun continues to influence market sentiment.
