- TRON’s OI started to rapidly increase as price increased, top trader positions went up, and true retail accounts went down.
- Whale activity could mean a potential bullish reversal for TRX, but retail could continue keeping the market in correction.
TRON [TRX] saw an intense surge of contracts, reaching 316,072 during its price rise.
The Top Trader position (TTP) segment of traders increased their long positions, while True Retail Accounts (TRA) traders decreased their long exposure.
The price movement proved that a substantial TRX whale was positioned as a long, while retail traders took short positions.
Open Interest moved inversely to the same extent that the earlier positions were established when price revisited the $0.248–$0.250 range. The TTP decreased, suggesting the whale closed its position.
Source: Hyblock Capital
After the whale’s precise exit, will retail traders now add more selling pressure?
If whales decide to jump back, TRX could possibly exceed previous resistance points. Without additional big buyers joining, a prolonged period of stagnation could occur or a correction formed.
The price areas and match-up between retail investors and whales suggested a probable trading scenario.
Yet, the results depended on when institutions would rejoin the market or whether retail interest would maintain the bearish momentum.
Whales vs. retail battle
TRX decreased by -1.05% to reach $0.2451 indicating continuation of bearish trends. Price broke out of its structure near $0.2550 and failed to sustain above that point, which indicated seller momentum.
The change of character (CHoCH) at $0.2450 and the main CHoCH zone lied in the vicinity of $0.2400.
A lasting sellers’ control would lead to price returning to test the support zone, with a potential continuation toward $0.2350.
TRON’s price action saw several Break of Structure (BOS) and change of character (CHoCH) but failed to stay above $0.2600 causing market weakness.
Source: TradingView
A breach of $0.2400 would validate a short-term downtrend in the market structure, which would boost the chances of price falling toward the $0.2300 liquidity area.
Alternatively, TRX would initiate a reversal toward $0.2550 and possibly continue through $0.2600 if changed the structure displayed as of press time.
There exists signs of exhaustion after the previous upward movement, which made continued downside tests appear likely before joining the next period of trading.
How was TRX doing, on-chain?
Meanwhile, TRON’s blockchain network maintained normal operational flow as it processed more than 2.53M transactions within a day while accumulating 10.12B transactions.
The daily transaction volume amounted to about 260.86M TRX. However, active address numbers fell between 2M. TRX distribution was widespread with 175.6M holders and a supply of 2.28B.
Source: TokenView
Active usage figures were encouraging, but the current decline in active user addresses could be indicative of deteriorating user engagement or impending price instability.
TRX could see a negative price trend with the low level of address activity and decrease in trading volume. Active user behavior could shift slowly but can turn around irreversibly based on the course of user attitudes.