Key Insights
Tron has gained 100% in the last 24 hours with a net gain of 75% at press time.
The flash rally in Tron was the result of a bollinger squeeze and an RSI breakout.
Tron plays a central role in DeFi markets, with the second-largest TVL and the second-largest on-chain stablecoin reserves.
It may cross $0.5 within 2024 based on a strong altcoin season.
Crypto markets have been seeing price explosions in multiple cryptocurrencies. Yesterday, we saw LINK explode by 27%, and today, it is Tron that has exploded almost 100%.
TRX-USDT Charts With Bollinger Band Squeeze Marked On It
Tradingview
In the last 24 hours, Tron's price rose from $0.23 to $0.44, seeing a 100% price explosion.
Tron's flash rally was primarily caused by two factors: the Bollinger Band Squeeze and the RSI breakout. Bollinger Bands in Tron have been converging since 24 Nov, while the RSI breakout happened on 02 Dec, both converging in the early morning of 4 Dec (UTC).
This Bollinger band squeeze and expansion were similar to those that took Bitcoin from $30k to $60k from late 2023 to early 2024.
The crypto now looks at $0.5 targets based on a strong altcoin season in the current markets.
Altcoin Index on CoinMarketCap
CoinMarketCap
Tron has played a central role in DeFi markets, with a large share in on-chain stablecoin reserves. Currently, $60 billion worth of USDT exists on Tron.
Tron plays a central role in DeFi markets. It is the second largest blockchain in terms of total on-chain assets and total value locked.
Tron Has 10% Share in DeFi TVL Across All Chains
DeFi Llama
Tron has a total of 60 billion USD, which is comparable to Ethereum's 71 billion USD. The presence of a high number of stablecoins is due to the historically high fee regime of Ethereum transactions.
Further, Tron's TVL is $13.6 billion, second only to Ethereum's $72 billion and much more in value than Solana's $9 billion.
A Bollinger band squeeze occurs when crypto sees very low volatility. This low volatility triggers the squeeze, which causes a Bollinger band expansion, and as a result, the price explodes, too.
This explosion caused a super rally in Tron today, taking it from $0.23 to $0.44 on 4 Dec 2024, creating a new ATH for it.
Tron Achieves New All-Time High of $0.44
CoinMarketCap
Bollinger Bands is a volatility indicator that shows whether a publicly traded financial asset like a cryptocurrency is overbought or oversold. It consists of three parts:
The Upper Band, which indicates an overbought zone and is plotted two standard deviations above the moving average. This indicates the highest price level that is typically possible in any scenario.
Lower Band, which indicates an oversold zone and is plotted two standard deviations below the moving average. This shows the lower price level that is typically possible in any scenario.
Moving Average, Simple or Exponential.
The markets are highly volatile if the upper and lower bands are apart. Similarly, bands that are close to each other signify low volatility.
If the price moves above the upper band, it shows that the prices may reverse. This indicates an overbought market.
Similarly, if the price moves below the lower band, it indicates that the price may rally soon. This shows an oversold market.
Bands can expand in a highly volatile market and contract in a low-volatility market. When bands contract in a low-volatility market, a special case occurs where the price rushes after going above the upper band. This is called a Bollinger Band Squeeze.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.