🌎 TRON Holders in Profit Despite Mixed Signals and Volatility Risks

The majority of TRON holders are currently in profit, but mixed social and on-chain signals have been influencing the asset.

TRON’s Recent Performance

TRON (TRX) has seen a 2.2% increase in the past 24 hours, trading at $0.136 at the time of writing. Its market cap stands at $11.8 billion, with a daily trading volume of nearly $300 million.

TRX Price and Market Metrics

Data from market intelligence platforms highlight that TRX’s price surge from $0.126 has led to a notable rise in total open interest over the past week. The open interest climbed from $47 million on August 12 to $71 million, hitting a five-month high.

A sudden increase in TRX’s open interest could potentially lead to higher liquidations, causing significant price fluctuations.

Additional Insights

Metrics show that the total funding rates aggregated by TRX rose to 0.012% after dipping into the negative zone on August 18. Historically, TRX experiences price corrections despite traders’ bullish stance. The weighted sentiment around TRON remains mostly bullish.

TRON’s High Concentration and Volatility Risks

According to data provided by IntoTheBlock, approximately 94% of TRX holders are currently in profit, despite the price being 55% down from its all-time high of $0.30 in January 2018. Only 3% of TRX addresses have accumulated the asset between $0.136 and $0.166, with the remaining tokens neither in profit nor at loss.

When the number of holders in profit reaches a very high level, some addresses may take profits, potentially leading to price declines.

It is worth noting that TRX could face high price volatility due to its token concentration. Data shows that over 56% of Tron tokens are held in whale wallets, while 34% belong to retail investors. While on-chain indicators suggest a possible price downturn, TRX could still see a hike due to increased positive sentiment on social platforms.