TRX price rebounded following Justin Sun’s $18 million investment into Tron Inc., aimed at acquiring more TRX from the open market. Meanwhile, on the daily chart, a bullish reversal pattern has been forming that could spur more gains.
Summary
- TRX price is up 5% from this month’s low.
- Justin Sun has invested $18 million into Tron Inc., which will use it to build its TRX treasury.
- A multi-month bullish reversal pattern was confirmed on the daily chart.
According to data from crypto.news, Tron (TRX) jumped to an intraday high of $0.286 on Wednesday, Dec. 31, before settling a little lower at $0.284 at press time. At this price, the 8th largest crypto asset by market cap stands 5% higher than its December low and 35% above its lowest point this year.
Tron price rose today as several recent bullish catalysts converged and acted as a tailwind for the asset.
First, TRON blockchain founder Justin Sun recently made an $18 million strategic equity investment into Tron Inc. With the capital, the Nasdaq-listed company will expand its corporate treasury holdings of TRX.
As the company accumulates more TRX from the open market, it could cement its position as one of the largest corporate holders of TRX, which in turn could improve investor demand for the token.
Investors are also bullish after asset manager Bitwise filed an application for a TRX Strategy ETF with the U.S. SEC. Once approved, the regulated fund structure can potentially drive increased demand from institutional investors, which can support gains over the long term.
Besides these developments, whales are also increasingly betting on potential upside for the asset. Data from Nansen shows that the amount of TRX tokens held by these deep-pocketed investors has increased from 1.59 million on Friday, Dec. 26, to 1.64 million as observed today.
If whales continue to keep up this trend, it could draw the attention of retail investors and lead to more upside in the coming days.
On the daily chart, TRX price has confirmed a multi-month falling wedge pattern, which is characterized by two descending and converging trendlines. A breakout from such a pattern is typically seen as a signal of strengthening bullish momentum.
At press time, other technical signs also look positive for buyers. Specifically, the price has climbed above its 50-day moving average, which confirms that buying pressure is intensifying.
Furthermore, the Supertrend indicator has switched to green as TRX price moved above it, reinforcing the bullish outlook.
Hence, there stands a good chance for TRX price to rally as high as $0.356, a level that lies roughly 25% above the current price. This target was derived by adding the height of the falling wedge pattern to the price level at which the breakout occurred.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.