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TRON (TRX) shows signs of a possible breakout after months of consolidation within a descending wedge pattern. The 4-hour chart, in particular, highlights a prolonged corrective phase, forming an ABCDE wave structure, which typically signals a reversal in price action. Since peaking at $0.45 on December 4, the TRX token has been in a downtrend, creating lower highs and lower lows within a contracting range.
However, the latest price movement suggests bullish momentum is building. At press time, the TRX token tests the 0.382 Fibonacci retracement level at $0.2427, a key resistance that could soon flip into a crucial support level. A four-hour candle close above this level could propel prices towards $0.255 and $0.268, with an extended target near $0.310.
Adding to the bullish case, the Relative Strength Index (RSI) is trending upward, showing a bullish divergence—an early sign that buyers are regaining control. If the TRX cryptocurrency successfully breaches the wedge’s resistance, it could shift market sentiment, attracting fresh buying pressure.
TRON’s Network Growth and Trading Activity Bolster Bullish Outlook
On February 12, 2025, the TRON (TRX) network achieved a significant milestone, surpassing 125 million addresses with a balance. This marks a major expansion in the token’s user base, reinforcing its position as one of the largest and most actively used blockchains. Historically, a growing number of active addresses often correlates with increased demand, which, if sustained, could fuel further price appreciation.
This surge in network adoption comes as the TRX cryptocurrency exhibits bullish technical signals, with price action attempting to break out of a descending wedge pattern. Increased on-chain activity and heightened user engagement may further bolster buying momentum, supporting the token’s potential move toward key resistance levels at $0.255 and $0.268.
At the time of writing, TRX was trading around $0.2433, reflecting a 0.88% increase in the past 24 hours and nearly 10% gains over the past week. Similarly, the cryptocurrency’s market capitalization currently stands at $20.95 billion (+0.81%), while 24-hour trading volume has surged by 20.11% to $678.33 million, indicating rising investor interest.
Analysts Predict TRX to Hit $1.11
According to analyst Javon Marks, TRON remains in the early stages of a major breakout. Marks highlights that TRX is emerging from a logarithmic wedge/flag-like pattern, which could lead to a substantial price surge. Based on historical price action, he predicts the cryptocurrency could rally over 505%, reaching $1.11 or higher if the pattern unfolds as expected.
$TRX (TRON) looks to still be well in progress of massive run, stemming from a Logarithmic Wedge/Flag-Like Pattern breakout and with the target still at $1.11+, there can still be significant upside movements on the way!
This means that a more than 505% upside could be coming… https://t.co/Ox4h16SWHS pic.twitter.com/mUAUptnIOL
— JAVON⚡️MARKS (@JavonTM1) February 6, 2025
This optimistic forecast further strengthens the bullish sentiment surrounding Tron’s TRX as technical indicators and network fundamentals align in favor of a possible rally. Investors will be closely monitoring price movements to confirm a decisive breakout in the coming weeks.