Tron Copies XRP to All-Time Highs with 70% ‘God Candle’ — What’s Next for TRX Price?

TRX (TRX), the native token of the Tron network, rose 104% on December 3, hitting an all-time high of $0.45, drawing a ‘God Candle’.

TRX is up about 140% from its November 5 low of around $0.16 and is up more than 94% over the past seven days.

TRX trading at $0.38, up 70% in 24 hours, according to data from Cointelegraph Markets Pro and TradingView.

High market activity was also accompanied by a surge in TRX’s price, with daily spot trading volume exceeding $14.6 billion on December 4, a 510% increase from the previous day.

This performance has raised questions about the sustainability of the upward trend and whether the rally has overheated.

TRX upsets Avalanche to re-enter top 10

TRX’s price performance over the past 24 hours has been accompanied by an increase in its market capitalization, which has reclaimed its place among the top 10 cryptocurrencies by market cap.

The token’s market capitalization has increased 65% in the last 24 hours to a record high of $32.8 billion, flashing another bullish signal for the altcoin heading into 2025.

TRX is currently more valuable than Avalanche (AVAX), which has fallen to 11th place with a market cap of $22 billion.

Commenting on TRX’s latest achievements, Tron founder Justin Sun added that six years later, the network still exists and is still being built.

“Things have changed, but one thing that hasn’t changed is that #TRON is still a top 10 contender.”

Increased open interest supports TRX’s upward trend

The surge in TRX price over the past day comes after a significant rise in open interest (OI) over the same period.

Open interest is a key indicator used by traders and analysts to assess market sentiment and predict future price movements.

TRX’s total OI across all exchanges increased 180% from $157 million on December 3 to $438.3 million on December 4, the highest in three and a half years.

Additionally, demand for leveraged long positions on TRX has been increasing over the past few days, as evidenced by the OI-weighted futures funding ratio.

Currently, 0.0556% of the 8-hour rate translates to 1.16% over 7 days, which typically cannot last more than a few days.

Nonetheless, increasing OI and funding ratios suggest futures traders are optimistic. This could indicate a continuation of an upward trend similar to the elevated funding rate seen in mid-November before prices began their initial uptrend.

What’s next for TRX price?

TRX’s new all-time high and record market cap are the latest evidence of an altcoin season that could see token prices rise even higher in December.

“Tron (TRX)’s breakout provides serious optimism for the rest of the market,” Blockchain Backer said in a post on X on December 4, adding that the token is unlikely to set a new all-time high. In 2021, this cycle was achievable.

TRX broke its previous high of $0.23, set nearly seven years ago in January 2018.

relevant: Justin Sun just became the largest investor in Trump’s cryptocurrency project.

Meanwhile, technical analyst Mihir noticed TRX price crossing the rising trend line and connecting monthly highs and set an upside target of $1.80.

“$TRX (Tron) continues what could soon be noted as a historic bull move,” Javon Marks, another analyst, said of X.

The analyst added that TRX’s upward trend is “not quite over” and set an upside target above $1.00.

“The price could head straight to the $1.11 region with a further increase of over 369%.”

However, not all analysts were optimistic about TRX’s continued upward trend, with anonymous analyst Team LAMBO warning of a possible correction towards $0.33.

This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.