- Tron’s TRX coin has jumped to the highest point since June 7th.
- The ecosystem has continued doing well as the fear and greed index rises.
- TRX has formed a dangerous rising wedge pattern on the 4H chart.
Tron price made a strong bullish breakout on Tuesday as the crypto fear and greed index moved to the greed zone. Justin Sun’s TRX jumped to a multi-week high of $0.078 as other coins soared. It has been one of the best-performing major cryptocurrencies having jumped by over 71% from the lowest level in 2022.
Fear and greed index rises
There is a sense of greed and optimism in the crypto and stock market after their strong performance in the first half of the year. Bitcoin price soared by more than 90% in this period while the Nasdaq 100 and S&P 500 jumped by double digits.
As a result, the stocks and crypto fear and greed indices have moved to the greed area. The crypto fear and greed index jumped to 62 while the CNN Money index rose to over 74. This is a sign that investors have embraced a risk-on sentiment.
Historically, risky assets like crypto and stocks tend to do well when investors are a bit greedy in the market. This happens because investors and traders tend to embrace fear of missing out (FOMO).
Read more: How to buy Tron.
Tron price has also done well because of the strength of its ecosystem. Data compiled by DeFi Llama shows that Tron’s total value locked in DeFi has held quite well this year. It stands at over $5.78 billion, making it the second-biggest player in the industry after Ethereum.
Further, Tron’s network has the most active stablecoin ecosystem. It holds over $43.97 billion stablecoins compared to Ethereum’s $69.2 billion. Binance’s BNB Chain has over $5.3 billion stablecoins.
Tron also has a huge community of users. Its total active users stands at over 1.33 million, which is higher than Ethereum’s 320k.
Tron price prediction
The 4H chart shows that the TRX price has held quite well in the past few days. It has moved above the 25-day and 50-day exponential moving averages (EMA). This is a positive thing for the coin.
Another good thing is that the coin’s MACD has remained above the neutral point since June 21st. It also rose slightly above the key resistance point at $0.078, the highest point this month.
However, the biggest risk is hat Tron has formed a rising wedge pattern, which is shown in orange. In price action analysis, this pattern is usually a bearish sign. Therefore, while the coin has more upside, buyers should be aware of the rising wedge risk.
