TRON [TRX] was unable to defend the $0.29-$0.30 demand zone during the sell-off that began in late January. At the time of writing, though the long-term swing structure of TRX was bullish, there was a good chance of a deeper retracement towards $0.245.
The network functionality has remained strong lately. AMBCrypto has already pointed out TRON’s position as the go-to stablecoin settlement layer. With its high transaction speeds and low fees, it is likely to remain that way in 2026.
On-chain activity and fundamental strength might not protect TRX bulls in the short term. Open Interest has declined steadily in February, indicating a fall in speculative conviction.
The $0.26-$0.27 demand zone was demonstrated to be a strong demand zone using the cost basis distribution heatmap. Will TRX see an influx of buyers to stop prices from falling beneath this floor?
TRON’s price action is at a make-or-break point for the bulls
The weekly chart revealed a steady uptrend since 2023, characterized by a series of higher lows. The most recent one was set at $0.26, coinciding with the cost basis demand zone at $0.26-$0.27.
The weekly RSI fell to 43, and the OBV has been relatively flat after the second half of 2025. Overall, while there is potential for recovery, the momentum and buying pressure have slowed down.
On the 1-day chart, the structure was flipped bearishly after the drop below $0.27 on Thursday, 05 February. The price bounce since then has been shallow, and has only filled the imbalance left behind by that day’s aggressive downward move.
The rally to $0.32 in the first week of December heraled a recovery from the longer-term Fibonacci retracement level at $0.27, but this move was soon fully retraced. Therefore, it seemed likely that TRX would drop deeper, towards the $0.245 support.
Traders’ call to action – Stay sidelined
The $0.26-$0.27 demand zone appeared a good buying opportunity, but the market trend was not indicative of a recovery at press time. It is possible that Bitcoin [BTC] would fall towards $60k to fill the weekly candlewick before a recovery.
Traders and investors can wait for this to play out before deciding whether to buy TRX or wait longer.
Final Thoughts
- TRON has maintained its strong network performance and on-chain activity.
- Price weakness could continue in the coming weeks and a drop towards $0.245 is possible.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
