TRX Price Drops 1.85% After 100 Million Token Transfer to Binance

On July 20, a significant movement of 100 million TRX tokens was observed, with an unknown wallet initially transferring 150 million TRX tokens, valued at $48.66 million, to the HTX cryptocurrency exchange. Subsequently, HTX transferred 99,999,999 TRX, worth $32.44 million, to Binance. This transaction has raised questions about the potential impact on TRX prices, as such large movements are often associated with sell-offs in the crypto landscape.

Following these transactions, the TRX price reacted immediately, slipping by 1.85% and currently standing at the $0.32 level. Market participation has also fallen during the same period, with TRX’s 24-hour trading volume dropping by 45% compared to the previous day. This drop has been taken advantage of by investors and long-term holders, as millions of dollars’ worth of TRX have left the exchanges. Data on spot inflows and outflows reveals that exchanges across the crypto landscape have witnessed an outflow of $22.45 million worth of TRX tokens. Such an outflow of TRX from exchanges hints at potential accumulation and could reduce selling pressure.

Technical analysis revealed that TRX was in an uptrend at press time, but due to its overstretched price over the past couple of weeks, it appeared to be undergoing a correction. On the four-hour timeframe, the asset has broken local support at the $0.323 level, opening the path for a price decline. Based on recent price action, if the correction continues, TRX could see a 7% drop and may reach the $0.2965 level in the future. As of now, TRX’s Relative Strength Index (RSI) stands at 55, indicating that the asset is in neutral territory, meaning it is neither in the overbought area nor in the oversold territory. In such a case, traders often wait for breakout or reversal signals near the next key support or resistance zones to determine the direction of the next move.

Given the current market sentiment, traders have begun betting on short positions. At press time, the major liquidation level on the lower side is $0.3136, where traders have built $3.25 million worth of long positions. Whereas, $0.3264 is another level on the upper side where traders have built $4.10 million worth of short positions. This clearly indicates that bears are currently dominating the asset, and the price may experience short-term downside momentum.

In summary, the movement of 100 million TRX tokens to Binance has raised concerns about a potential sell-off and price decline. However, the outflow of TRX from exchanges also hints at potential accumulation, which could reduce selling pressure. The current market sentiment is bearish, with traders betting on short positions. If the correction continues, TRX could see a 7% drop and may reach the $0.2965 level in the future. However, traders are waiting for breakout or reversal signals near the next key support or resistance zones to determine the direction of the next move.