Tron reaches 3-year high but correction may loom

Tron (CRYPTO:TRX), the native cryptocurrency of the decentralised blockchain Tron, has surged to a three-year high, trading at $0.16, a level not seen since May 2021.  

Over the past week, TRX has seen a 27% increase, with an 11% rise in the last 24 hours alone.  

This price surge has been accompanied by a significant jump in trading volume, which has soared by 139% to $1.87 billion, indicating strong market interest and bullish sentiment.  

The positive market sentiment surrounding TRX is further highlighted by its weighted sentiment score, which has reached 7.32, the highest level since November 2022.  

Additionally, futures open interest for TRX has spiked by 77% in the past 24 hours, reflecting increased participation from traders and a heightened level of market activity.  

However, despite the recent bullish momentum, there are signs that TRX may face a potential price correction.  

The Relative Strength Index (RSI) for TRX currently stands at 84.76, while the Money Flow Index (MFI) is at 91.07.  

Both indicators suggest that TRX is in an overbought condition, with the market potentially overheating.  

When RSI exceeds 70 and MFI surpasses 80, it typically signals that a pullback may be imminent as buyer exhaustion sets in.  

If the market experiences a downturn, TRX could see its price retreat to around $0.14, representing a 13% decline from its current level.  

However, if the bullish trend continues, TRX may push higher and attempt to reclaim its year-to-date high of $0.17.  

As the market closely watches these developments, traders and investors should be cautious of the potential for a short-term correction, even as TRX enjoys its current surge.

At press time, TRON was priced at $0.154.