TRON faces 2 major challenges - What will the road ahead look like?

TRON (TRX) has quietly reaffirmed its on-chain dominance.

According to data from CryptoQuant, the number of daily transactions has nearly doubled since September 2023, rising from below 5 million to nearly 9 million per month, indicating strong innovation and recovery following the bear market downturn.

Currently, TRX is trading around $0.2736, reflecting its increasing utility.

In fact, the decision to slightly increase the fees of TRON, paid in TRX, has also contributed to boosting the demand for stronger functionality.

With users paying more with TRX, the network has boosted its revenue and demand for functionality, two metrics that often support the price growth.

Source: CryptoQuant## Confidence in the price surge of TRX

The latest centralized data indicates an accumulation trend from large holders.

Whales have increased their holdings by 9.38% in 30 days, while investor wallets surged by 43.01%. In contrast, the growth of retail wallets remains modest at 3.57%.

This divergence indicates that strategic buyers are increasingly confident in the medium-term outlook for TRX, while smaller holders remain cautious.

Source: IntoTheBlockIf retail money begins to increase, the current pressure from whales could form a strong support level for the price of TRX.

Why is TRON booming on social media?

After several months of gloom, TRON has regained attention.

According to Santiment, the Social Dominance index of TRX surged past 1.4% before cooling off a bit.

This increase indicates that TRX is being discussed quite actively, possibly due to price fluctuations and on-chain development.

Such spikes typically occur before increased trading activity, especially if supported by optimistic sentiment and sustainable growth of the network.

Source: Santiment## Will THESE conflicting signals slow down the rise of TRX?

However, not all indicators are optimistic. The funding rate of TRX remains unstable.

While noting bursts of positive sentiment for a moment, this indicator continues to revert to negative levels indicating a bearish trend in the futures market.

This structure shows the hesitation of the trader. The positive aspect is that it also reduces the risk of excessive Long leverage, laying the foundation for a more sustainable upward trend if the sentiment gradually changes.

Source: Santiment## Liquidity wall at $0.28 and selling pressure

The 24-hour liquidation map of TRX shows dense liquidation clusters between $0.275 and $0.283, serving as the main resistance area.

Large leveraged positions are stacked within this range, meaning that a price spike in this area could trigger forced liquidations.

On the downside, smaller clusters also exist between $0.265 and $0.26, creating a tight short-term trading range.

Unless buyers convincingly push above $0.28, TRX risks remaining stuck between key liquidity zones, especially in the context of macro volatility or changes in funding dynamics.

Source: CoinGlass## Will TRX challenge external pressure?

The fundamental factors of this altcoin seem promising, with skyrocketing trading volume, investor accumulation, and increasing community interest.

However, the cautious sentiment regarding derivative products and the liquidation resistance level near $0.28 remains quite risky. If whales maintain buying pressure and interest is sustained, TRX may continue to rise higher.

Vincent