Since the middle of August, when the bears consolidated their power, TRX holders have experienced bad luck. Their fortune might be about to change, though. The cryptocurrency is currently trading at a substantial discount, and on top of that, the charts appear to be indicating that a bullish pivot may be imminent.
At the time of publication, TRX was seeking to recover from a $0.058 weekly low. The bottom range where the cryptocurrency found support between February and April of this year seems to be around this level. Given that it is now trading within the same zone, the chances of a bounce from the same level are solid.
TRX is now in relatively little demand on the market. Especially in the absence of a potent catalyst, this frequently happens when a cryptocurrency tries to reverse course from a bearish trend.
Why is observing the funding rate important
Observing the funding rate is something essential as it demonstrates the shift in market opinion toward derivatives. These observations typically support earlier ones and go hand in one with the demand on the spot market.
The stablecoin supply held by the whales increased according to observation as well as the development activity metric. Although whales have a collection of stablecoins to load up on TRX, the price movement indicates that whale activity is still insufficient. Investor optimism may be boosted this week by the positive development activity that has been seen.
The weighted sentiment index indicates that the current state of the market has not changed. The latter is still within its lower monthly range, which might be the reason why recent bullish attempts have not produced any upward movement over the weekend.
TRX has so far shown a number of signals pointing to a probable bullish pivot in the near future. However, the present FUD-filled market conditions that have ruled for the past few days are reflected in the market sentiment.
This indicates that TRX bulls are prepared for an improvement in the overall crypto market.