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Crypto Potato 2025-08-29 20:02:52

Breakout or Major Crash for Tron’s TRX: These Factors Explain What’s Next

Tron (TRX) is currently approaching a decisive moment in its market cycle. Data shared by CryptoQuant revealed that TRX is in a tricky setup that mirrors conditions often seen before major corrections. The crypto asset is hovering just below its all-time high (ATH), a level that could be either a gateway to price discovery or a ceiling that triggers sell-offs. Make-or-Break Moment The current market sentiment sits firmly in the “Extreme Greed” zone. Such an increased euphoria reflects traders aggressively positioning for an ATH breakout, but it also raises the probability of a pullback if momentum falters. An important concern is the widening gap between TRX’s current price and its Realized Price, which highlights the presence of large unrealized profits across the network. When this gap stretches too far, it often incentivizes profit-taking, thereby amplifying the risk of downward pressure. To top that, TRX’s price is nearing the Top Value Band. CryptoQuant explained that this zone traditionally points to overbought conditions and high vulnerability to corrections. The convergence of extreme sentiment, stretched valuation bands, and proximity to ATH paints a fragile picture where both upside potential and downside risk remain high. If TRX manages to break through resistance, it could ignite fresh momentum and extend its rally, but the risks of a sharp reversal remain equally real, especially if profit-taking accelerates. The platform added, “Suggested Strategy: Traders should proceed with caution. Utilizing a trailing stop-loss to lock in profits and considering partial profit-taking at current levels is recommended. New entries in this euphoric phase carry high risk.” TRX’s Next Stops As TRX trades at $0.347, experts appear to be waiting for a bullish break. A crypto analyst even declared that the token is “ready to fly” despite recent turbulence in the broader market. According to the analysis, TRX has not only maintained an uptrend during recent dips but has also successfully confirmed a re-test of its all-time high, which they believe to be an encouraging technical signal for traders betting on further upside. The analyst has set ambitious price targets of $0.65 in the near term and a subsequent longer-term projection of $1.25. The post Breakout or Major Crash for Tron’s TRX: These Factors Explain What’s Next appeared first on CryptoPotato .

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