100 mln TRX moved to Binance: Where will this Tron accumulation take prices?

Key Takeaways

$22.5 million worth of TRX leave exchanges, hinting at a potential accumulation. If sentiment remains unchanged, TRX could see a 7% drop and may reach the $0.2965 level.

Tron [TRX] is at risk of a potential dip after losing local support. AMBCrypto’s analysis of the data reveals a significant dumping of TRX tokens on exchanges, which likely caused this decline.

This situation is now raising questions — Is it time to sell TRX, or is this just a correction?

100 million TRX move to Binance 

On the 20th of July, blockchain-based transaction tracker WhalesAlert shared multiple posts on X (formerly Twitter) involving millions of dollars’ worth of TRX.

In one post, it was reported that an unknown wallet initially transferred 150 million TRX tokens, valued at $48.66 million, to the HTX cryptocurrency exchange.

However, the odd part is that HTX then transferred 99,999,999 TRX, worth $32.44 million, to Binance.

However, it has not yet been confirmed that HTX transferred this large amount of TRX tokens for a sell-off, but in the crypto landscape, such transactions are typically associated with a potential sell-off.

Price drop and $22.45 million accumulation 

Following these transactions, the TRX price reacted immediately, slipping by 1.85% and currently standing at the $0.32 level. Not only has the price declined, but market participation has also fallen during the same period.

CoinMarketCap data reveals that TRX’s 24-hour trading volume has dropped by 45% compared to the previous day.

This drop, amid the trending market, has been taken advantage of by investors and long-term holders, as millions of dollars’ worth of TRX have left the exchanges, according to the on-chain analytics tool CoinGlass.

Data on spot inflows and outflows reveals that exchanges across the crypto landscape have witnessed an outflow of $22.45 million worth of TRX tokens.

Source: CoinGlass

Such an outflow of TRX from exchanges hints at potential accumulation and could reduce selling pressure.

Tron price action and technical analysis 

AMBCrypto’s technical analysis revealed that TRX was in an uptrend at press time, but due to its overstretched price over the past couple of weeks, it appeared to be undergoing a correction.

Source: TradingView

However, on the four-hour timeframe, the asset has broken local support at the $0.323 level, opening the path for a price decline.

Based on recent price action, if the correction continues, TRX could see a 7% drop and may reach the $0.2965 level in the future.

As of now, TRX’s Relative Strength Index (RSI) stands at 55, indicating that the asset is in neutral territory, meaning it is neither in the overbought area nor in the oversold territory.

In such a case, traders often wait for breakout or reversal signals near the next key support or resistance zones to determine the direction of the next move.

TRX traders’ strong bearish conviction

Given the current market sentiment, traders have begun betting on short positions, as revealed by Coinglass.

At press time, the major liquidation level on the lower side is $0.3136, where traders have built $3.25 million worth of long positions.

Whereas, $0.3264 is another level on the upper side where traders have built $4.10 million worth of short positions.

Source: CoinGlass

This clearly indicates that bears are currently dominating the asset, and the price may experience short-term downside momentum.