On December 3, the native token of the Tron network, TRX, painted a "God candle" by rising as much as 104% to hit new all-time highs at $0.45.
TRX’s Price Surge: A Closer Look
TRX has climbed approximately 140% from its November 5 low of around $0.16 and is up more than 94% over the last seven days. Data from Cointelegraph Markets Pro and TradingView shows TRX trading at $0.38, up 70% over the 24 hours.
High market activity accompanies TRX’s price surge, with its daily spot trading volumes topping $14.6 billion on December 4, rising by 510% over the previous day.
Sustainability of the Uptrend
The performance has led to questions about the sustainability of the uptrend and whether the rally has overheated.
TRX Flips Avalanche to Reenter Top-10
TRX’s price performance over the last 24 hours is accompanied by growth in its market capitalization, which has seen it reclaim its spot among the top 10 largest cryptocurrencies by market value. The token’s market cap has grown by 65% over the last 24 hours to a record-high of $32.8 billion, flashing another bullish signal for the altcoin going into 2025.
TRX is now valued more than Avalanche (AVAX), which has slipped to 11th place with a market value of $22 billion.
Tron Founder Justin Sun Weighs in
Tron founder Justin Sun commented on TRX’s latest performance, saying that six years later, the network was still here and still building. He added:
"Things have changed, but one thing hasn’t: #TRON remains a top 10 contender."
Increasing Open Interest Backs TRX’s Upside
The surge in the price of TRX over the last day comes after a significant jump in its open interest (OI) over the same timeframe. Open interest is a key metric that traders and analysts use to assess market sentiment and anticipate future price movements.
TRX’s total OI on all exchanges rose 180% from $157 million on December 3 to a 3.5-year high of $438.3 million on December 4.
There is also an increasing demand for leveraged long positions in TRX over the last few days, as indicated by the OI-weighted futures funding rate. TRX’s average perpetual contracts 8-hour funding rate stands at 0.0556%, which translates to a 1.16% cost over seven days.
What’s Next for TRX Price?
TRX’s new all-time high and record market cap are the latest evidence of altcoin season, which could see the token’s price rally even higher in December.
"The breakout by Tron (TRX) offers a serious glimmer of optimism to the rest of the market," said Blockchain Backer in a December 4 post on X. "Although the token was unable to set a new all-time high in 2022, its recent surge suggests that it may be worth keeping an eye on."
Expert Opinions
TRX’s price movement has sparked various opinions from experts and analysts. Some predict a possible correction towards $0.33, while others believe the token will continue to rise.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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