Can TRON reclaim $0.33 after its $234M hack fueled buying spree?

On Thursday, the 29th of October, TRON [$TRX] prices surged from $0.328 to $0.365 in a matter of hours. Attackers who had drained Binance hot wallets for $6.3 billion across ten blockchains rushed to swap their $USDT for $TRX.

Since Tether can freeze its stablecoin, the urgency to swap to $TRX, where no central issuer can block transfers, saw a $234 million $USDT swap to $TRX on SunSwap, at $0.367 per $TRX, blockchain data firm Bitquery confirmed.

At that time, the $TRX market price had been only $0.33, which helped explain the swift price surge. Other intelligence platforms have since reported whale wallets with the stolen funds, turning the artificial buying spree into a supply overhang for the global stablecoin settlement giant.

$TRX price bounce stopped at key retracement level

Since Thursday’s price spike, the Layer 1 blockchain’s native token has witnessed a 13.4% price correction. Incidentally, the market structure on the 1-day timeframe had been bearish.

The swing move southward from $0.3775 to $0.3108 in May and early June was the one that dictated the bearish market structure. Using these levels, Fibonacci retracement levels were plotted.

The 78.6% Fibonacci retracement level was at $0.363, and the price surge halted just above this level on Thursday. Thereafter, a daily session close below $0.3108 ensued.

The OBV was sliding lower, continuing the downtrend of recent weeks, while the MACD also took a sharp nosedive.

What next for $TRX?

The MACD formed a bullish crossover in bearish territory, signaling a price bounce was underway. Based on the size of the impulse move down from $0.365, it is likely that the current bounce could go to $0.333-$0.352.

On the way, the $0.33 supply zone was also a place that could see a bearish price reaction.

Swing traders and long-term investors need to be mindful of the larger bear trend at play. A price bounce to $0.33 followed by a slide toward $0.30 or even $0.27 is a possibility for $TRX in the coming weeks.

Final Summary

• The TRON price surge on Thursday was a result of artificial demand, and it reversed from a key technical resistance level.
• The altcoin is now in a bearish price structure, though a short-term bounce toward the $0.33 supply zone is possible.