Is the Tron price rally cooling off? Important Fibonacci levels to keep an eye on

The crypto market witnessed renewed recovery momentum in Wednesday’s market session as Bitcoin aimed for another breakout attempt above the $100,000 mark. Tron price drowned out the market’s overall uptrend and recorded a sharp 23% decline to $0.33, indicating a correction after the rally on the daily chart. Will the pullback restore exhausted bullish momentum for an extended rally in December?

According to Coingecko, TRON’s market cap is currently $28.8 billion, while it stands at $13.5 billion.

Key highlights:

• The overhead extended TRON price rally required a temporary pullback to revive bullish momentum.
• The $0.31 and $0.2.7 are considered immediate support for TRX price.
• Steady growth in balanced TRON addresses and an increase in network revenue indicate potential for a renewed uptrend.

TRON price is gaining momentum with record revenues and a growing user base

On December 3, Layer 1 cryptocurrency Tron caught the attention of investors with a massive 96% increase, reaching a new high of $0.45. Following the rally in the altcoin market, this TRX price gained momentum as speculation arose about Tron’s possible inclusion in Grayscal’s assets. Additionally, Tron founder Justin Sun’s recent comment on “TRX” as the “next XRP” further fueled the bullish momentum.

According to Lookonchain, Tron hit a new daily sales record of $21.66 million, an incredible 98% increase compared to the previous day. This increase reflects increased activity and adoption across the network.

Tron Network(@trondao) hit a new daily sales record of $21.66 million yesterday, up 98% from the previous day!https://t.co/Q3YRJa7JuB pic.twitter.com/AHD1MPfoz6

– Lookonchain (@lookonchain) December 4, 2024

Adding to this momentum, data from IntoTheBlock showed that the total number of Tron addresses with balances has exceeded 120 million, a testament to its growing user base.

The total number of @trondao Addresses with a balance of over 120 million! pic.twitter.com/YqAw5vQ3BR

— IntoTheBlock (@intotheblock) December 4, 2024

These developments highlight Tron’s robust growth trajectory, fueled by increased on-chain activity and widespread adoption.

Fibonacci levels indicate key support zones for TRX pullback

Crypto investors believe that today’s TRON price reversal is likely a post-rally correction fueled by short-term profit booking. During the peak, the momentum indicator RSI rose to 93%, highlighting an overextended advance that requires a short pullback.

Thus, the reversal could allow buyers to revive the exhausted uptrend and stabilize prices for the next jump.

According to the Fibonacci retracement tool, the coin price could find suitable support at $0.31 and $0.2.7, which coincides with the FIB values ​​of 32.8% and 50%.