Why TRX’s bullish resistance was rooted in stablecoin activity.
Tron’s TRX price has historically demonstrated the ability to detach from the overall market trend.
Especially when the market experiences pullbacks, and such a scenario might be playing out this week.
TRX price faced some sell pressure in the last 7 days, just like most of the top coins. However, its counterparts like Bitcoin and Ethereum were down by over 5% during the same period.
TRX experienced a pullback of over 1% during the same period, which meant that it demonstrated resistance against the rising sell pressure.
TRX price previously delivered 8 consecutive weeks of bullish momentum. The cryptocurrency could break this streak if it concludes this week in the red.
One of the reasons why TRX has been resisting sell pressure could be the robust native demand for the coin. Tron has been holding the poll position as the network with the highest USDT supply.
Unsurprisingly, TRX also dominated the transactions landscape courtesy of its dominant stablecoin strategy.
This has significantly contributed to healthy demand for its network and, hence, the same for its native coin.
This means TRX demand remained healthy even when sell pressure intensified. The stablecoin focus allowed Tron to benefit regardless of market direction.
On a related matter, Tron just facilitated a transfer of $860 million in stablecoins into the OKX exchange.
This transaction was significant because stablecoin transactions have historically been observed before a major price move.
This could signal that investors were gearing up for yet another wave of mega crypto flows.
Meanwhile, TRX’s organic demand, combined with a long-term holder mentality, contributed to its robust upside.
This performance bolstered holder profitability. This means holders might be incentivized to take profits aggressively if the long-term bullish outlook faces more uncertainty.
According to Glassnode, Tron crypto’s realized profit surged to a historic high of $230 million on 8 August. Despite this, the TRX price still maintained a significant upside.
According to the chart, most of the sell pressure was from addresses that held the coin for more than two years.
Nevertheless, the data highlighted the rising sell pressure considering that most holders were deep in profit.
TRX still managed to maintain a noteworthy resistance against the recent wave of sell pressure.
Nevertheless, its ability to keep the bullish momentum was in question, especially with the rising profit-taking among long-term holders.
While organic demand for TRX maintained a robust position courtesy of network transactions, the impact of that activity was more evident in fees.
Tron network fees outperformed heavy hitters like Ethereum and Hyperliquid to secure the top spot. This was mostly thanks to stablecoin transactions.
Meanwhile, the recent surge in sell pressure in the market saw open interest shrink by almost $50 million in the last 5 days.
Funding rates also dipped considerably, which reflected the declining bullish optimism.
Despite the bearish wave, TRX price still demonstrated some confidence. The cryptocurrency received $12.6 million worth of positive netflows in the last 24 hours.
This explained why the cryptocurrency managed to withstand the recent surge in sell pressure.
While the spot flows underscored the promise of recovery, the cryptocurrency still boasted elevated levels of unrealized profits.
Add market uncertainty to the mix, and this could be a recipe for more sell pressure in the coming days.
In summary, short-term volatility was to be expected, but beyond its strong stablecoin position, Tron still had another catalyst at play.
Its recently announced treasury could potentially boost the long-term outlook and support its potential push towards a retest of its historic high.
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