Historic surge in 1.5 years... With resistance gone, will Tron also break the $0.400 wall?

▲ Tron (TRX)/AI-generated image ©

The Tron (TRX) market is currently undergoing an unstoppable upward rally, reaching its highest point in a year and a half, fueled by the issuer's aggressive buyback strategy and a genetic influx of funds into the derivatives market. Unlike most altcoins that are struggling with mixed sentiments and price stagnation, Tron appears to be enjoying an unparalleled period of growth, driven by a reduction in circulating supply and a dramatic recovery in trader confidence. While there's a possibility of a temporary breather due to overheating indicators, the absence of clear supply resistance levels above on the charts has led to prevailing optimism in the market that conquering the psychological threshold of $0.400 is only a matter of time.

According to investment media FXStreet on May 26 (local time), Tron's price broke past the $0.370 mark on Tuesday, soaring to $0.374 intraday, marking a new high in 1.5 years since December 6, 2024. Behind this blazing bullish sentiment is the comprehensive accumulation by the issuer, Tron Inc. Tron Inc. announced via its official X account that it had purchased an additional 136,998 TRX on Monday alone, bringing the company's total deposited assets to over 697.5 million TRX. The foundation stated its intention to continuously expand its Digital Asset Treasury (DAT) holdings to enhance long-term shareholder value.

Such direct large-scale accumulation by whales is a direct hit that expands public acceptance and dramatically reduces the actual circulating supply in the market, strongly supporting mid-to-long-term prices. In addition, key indicators in the derivatives market are also robustly backing Tron's explosive price surge. According to CoinGlass data, Tron futures Open Interest across major exchanges soared to a record-breaking $381 million on Tuesday. This is the highest performance since mid-October 2025, proving that new funds have been steadily flowing in since early May this year, solidifying the buying power's foundation.

The funding rate mechanism in the futures market is also emitting very positive signals. Tron's futures funding rate has been on an upward trend since turning positive last Saturday, surging to 0.0079% on Tuesday. The maintenance of a positive funding rate signifies that long-position traders are aggressively betting on further upside, even paying fees to short-position sellers. This is clear evidence of how pervasive bullish sentiment towards Tron is throughout the market. With the continuous influx of new money and traders' firm conviction, Tron's upward momentum is gaining further traction.

From a technical perspective, Tron continues its relentless rally, having established a perfectly bullish structure that is significantly above its 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs). The complete recapture of the previous Fibonacci high of $0.370 and its ascent above it firmly solidifies short-term buying dominance. However, with the daily Relative Strength Index (RSI) soaring to around 84, it has entered an extremely overbought zone. Therefore, a temporary technical correction or a period of consolidation to narrow the gap caused by the steep rise could emerge at any time, requiring caution for those considering a chase buy.

While the Moving Average Convergence Divergence (MACD) still indicates upward momentum in positive territory, even if there is a price correction due to short-term profit-taking, the $0.370 level, which transformed into support immediately after the breakout, and the Fibonacci 78.6% retracement level of $0.348 are expected to form robust defensive walls. Below these, the upward trendline at $0.342, the 50-day EMA at $0.341, and the Fibonacci 61.8% level at $0.3316 are tightly attracting pending entry demand. As there is currently no liquidation wall obstructing the upside based on available data, if the support levels are not breached, a solid unimpeded rally towards the symbolic target price of $0.400 is expected to continue.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*