The Orca wallet has made a strong breakthrough, capturing up to 52% of the total USDT flow on the TRON network (TRX) on September 4th, marking a new record. This achievement surpasses the peak of 45% in August – a time that coincided with an 8% increase in Bitcoin (BTC). In the past, such fluctuations often reflect liquidity shifts to the exchange, paving the way for market expansion cycles.
It is noteworthy that TRON's heavy reliance on USDT adds weight to this data. As of now, TRX is trading around the 0.338 USD mark after a period of accumulation. With the mid-tier wallet group leading the liquidity flow, analysts believe the market may be paving the way for a new breakout phase, promising to provide momentum for TRX to surge in the upcoming sessions.
Can TRX surpass the 0.37 USD mark?
The daily chart of TRX is outlining a fairly clear "cup and handle" pattern – often associated with a continuation of the bullish trend. The neckline coincides with the resistance confluence area of 0.356 – 0.37 USD, becoming a key level for a decisive breakout.
At the same time, the price action is forming a "descending wedge" pattern – a technical structure that often signals a strong recovery as demand gradually improves.
The RSI indicator is currently oscillating around the level of 46, still within the neutral zone, indicating that there is still considerable room for momentum expansion. Therefore, to confirm the uptrend, the bulls need to successfully conquer the "neckline", thereby opening up the Fibonacci target at 0.39 USD and further at the level of 0.42 USD.
Daily TRX/USDT Chart | Source: TradingView## Accumulating quietly before the explosion
The flow of money on the exchange is helping to strengthen the technical picture of TRX. Specifically, on September 4, this token recorded a net withdrawal of nearly 10 million USD – a clear signal indicating a sustainable accumulation trend.
Typically, this pattern occurs when investors prioritize transferring assets to cold wallets, thereby reducing short-term selling pressure. This development also aligns perfectly with previous on-chain data, subtly revealing preparations regarding liquidity.
In the spot market, investor confidence has somewhat manifested, although prices remain hesitant. History shows that stable net withdrawals often serve as a springboard for strong acceleration phases. If the accumulation trend continues, TRX is likely to attract stronger buying pressure, creating an advantage for the bulls as they approach important resistance levels.
Source: CoinGlass## TRX: Potential short squeeze?
In contrast to the spot market, the picture in the derivatives market has a different hue. As of now, the funding rate of TRX has shifted to negative territory, indicating that the bears are temporarily in control.
However, this is not just a purely pessimistic signal. If the demand unexpectedly accelerates, a "short squeeze" scenario can completely occur, forcing the bears to retreat as both the spot accumulation and the technical structure lean towards a bullish trend.
In fact, in the past, it has been proven many times that the combination of a negative funding rate and strong net withdrawals from spot exchanges often acts as a catalyst for violent breakouts. At that time, the activity of "buying back to close Short positions" occurs in large numbers, amplifying the price's volatility. Therefore, the current derivative divergence could make TRX extremely sensitive to the prospect of conquering the 0.37 USD mark.
Source: CoinGlass## Is TRX preparing for a decisive breakout?
The dominance of the Orca wallet, stable net outflows, along with a positive chart structure, is reinforcing a solid bullish scenario. Although the derivatives market currently leans towards a bearish trend, this factor could act as a catalyst, triggering a "short squeeze" if demand in the spot market continues to hold.
In this context, TRX seems to be approaching an important threshold at 0.37 USD. A successful breakthrough above this level could open up new growth potential, with Fibonacci targets in the range of 0.39 – 0.42 USD.
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TRX: Do technical factors and the risk of a short squeeze create strong bullish momentum?
The Orca wallet has made a strong breakthrough, capturing up to 52% of the total USDT flow on the TRON network (TRX) on September 4th, marking a new record. This achievement surpasses the peak of 45% in August – a time that coincided with an 8% increase in Bitcoin (BTC). In the past, such fluctuations often reflect liquidity shifts to the exchange, paving the way for market expansion cycles.
It is noteworthy that TRON's heavy reliance on USDT adds weight to this data. As of now, TRX is trading around the 0.338 USD mark after a period of accumulation. With the mid-tier wallet group leading the liquidity flow, analysts believe the market may be paving the way for a new breakout phase, promising to provide momentum for TRX to surge in the upcoming sessions.
Can TRX surpass the 0.37 USD mark?
The daily chart of TRX is outlining a fairly clear "cup and handle" pattern – often associated with a continuation of the bullish trend. The neckline coincides with the resistance confluence area of 0.356 – 0.37 USD, becoming a key level for a decisive breakout.
At the same time, the price action is forming a "descending wedge" pattern – a technical structure that often signals a strong recovery as demand gradually improves.
The RSI indicator is currently oscillating around the level of 46, still within the neutral zone, indicating that there is still considerable room for momentum expansion. Therefore, to confirm the uptrend, the bulls need to successfully conquer the "neckline", thereby opening up the Fibonacci target at 0.39 USD and further at the level of 0.42 USD.
The flow of money on the exchange is helping to strengthen the technical picture of TRX. Specifically, on September 4, this token recorded a net withdrawal of nearly 10 million USD – a clear signal indicating a sustainable accumulation trend.
Typically, this pattern occurs when investors prioritize transferring assets to cold wallets, thereby reducing short-term selling pressure. This development also aligns perfectly with previous on-chain data, subtly revealing preparations regarding liquidity.
In the spot market, investor confidence has somewhat manifested, although prices remain hesitant. History shows that stable net withdrawals often serve as a springboard for strong acceleration phases. If the accumulation trend continues, TRX is likely to attract stronger buying pressure, creating an advantage for the bulls as they approach important resistance levels.
In contrast to the spot market, the picture in the derivatives market has a different hue. As of now, the funding rate of TRX has shifted to negative territory, indicating that the bears are temporarily in control.
However, this is not just a purely pessimistic signal. If the demand unexpectedly accelerates, a "short squeeze" scenario can completely occur, forcing the bears to retreat as both the spot accumulation and the technical structure lean towards a bullish trend.
In fact, in the past, it has been proven many times that the combination of a negative funding rate and strong net withdrawals from spot exchanges often acts as a catalyst for violent breakouts. At that time, the activity of "buying back to close Short positions" occurs in large numbers, amplifying the price's volatility. Therefore, the current derivative divergence could make TRX extremely sensitive to the prospect of conquering the 0.37 USD mark.
The dominance of the Orca wallet, stable net outflows, along with a positive chart structure, is reinforcing a solid bullish scenario. Although the derivatives market currently leans towards a bearish trend, this factor could act as a catalyst, triggering a "short squeeze" if demand in the spot market continues to hold.
In this context, TRX seems to be approaching an important threshold at 0.37 USD. A successful breakthrough above this level could open up new growth potential, with Fibonacci targets in the range of 0.39 – 0.42 USD.
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