Continuing its rather impressive increase in recent weeks, Tron has hit a 3-year high as TRX looks to continue surging. Indeed, the token has surpassed the $0.16 level as it trades at its highest price since 2021. That surge took place after notable community approval took place.
TRON network founder Justin Sun announced that a network energy cap increase to 120 billion was approved. Moreover, that had a massive impact on the platform’s overall demand. It was also a necessity after the success of SunPump led to massive congestion issues over the ongoing activity and popularity.
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TRX Hits 3-Year High as Traders Continue to Drive Tron Higher
There are few cryptos that have enjoyed a meteoric rise that is on par with TRX in August. Over the last 30 days, the token has increased more than 20%, according to CoinMarketCap. Additionally, it is up more than 18% in the last seven days alone.
Its most recent surge has led Tron to a 3-year high, as TRX has surpassed the $0.1648 mark. That was driven by a recent decision to increase the network’s energy cap. Therefore, allowing even more transactions to be processed at a reduced fee. That only increased the overall demand for the TRX token.
Now, the question is where can the token go from here? There are some concerns derived from market volatility concerns. Indeed, that reality is clearly seen in the asset’s upper and lower bands on its Bollinger Bands indicator via TradingView.
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The signal is important to eyeing potentially dangerous conditions. Although the token’s price has increased, so too has Tron’s Bollinger Bandwidth. Specifically, the signal has reached its highest levels since June of this year. That displays increased volatility, with further data showing some worrisome developments.
TRX has a relative strength index (RSI) of 76.76, which has it firmly in overbought territory. This likely indicates a price correction is nearing. The question is, how harsh could it be? There is the potential for the asset to fall to $0.14, a 13% decline from its current value.
Yet, that is not set in stone. There is still potential for bulls to take control. If they do, and defend the asset’s price level, TRX could create a pathway to the $0.17 level. Either scenario is certainly not out of the question, and only time will tell which comes to fruition.
