CryptoQuant: Bollinger Bands Narrowing, TRX Ready to Break Through

Gate News bot news, according to analysis from CryptoQuant, TRON (TRX) is showing signs of short-term consolidation, and the Bollinger Bands have significantly narrowed – this usually indicates that a fluctuation is about to occur. Currently, the lower band of the Bollinger Bands is around 0.26 USD, and TRX recently rebounded at this level. After the rebound, the price is approaching the middle band of the Bollinger Bands (equilibrium area), which is about 0.27 USD, and this area represents the market's equilibrium point.

As the TRX price hovers around the average region, the market may experience liquidity accumulation as traders readjust their strategies in preparation for one of two scenarios: allocation in the upper region or continued buying in the lower region.

If TRX successfully breaks through the level of $0.27 and converts it into a support level, the next target may be the $0.29 region—this region corresponds to the upper band of the Bollinger Bands and is also a potential distribution area. If it breaks through this level and confirms the trading volume, it may open a new upward trend, marking the end of a continuous accumulation trend lasting 1 to 2 months.

The "Bollinger Band Squeeze" phenomenon observed on TRON is a noteworthy technical signal, which is usually accompanied by a sharp expansion of volatility after the squeeze phase. Investors should closely monitor the price reaction around $0.27 to determine the next move for TRX.

(Source: CryptoQuant)