Tron Mimics XRP Price Boom As TRX Rallies 100% in a Day — Next Price Targets

Tron (TRX) has undergone a surprise price boom in the last 24 hours, rising by over 100% to reach a new record high of $0.44 on Dec. 3. Its price rally appears as the month’s most profit-making crypto, XRP (XRP), shows signs of upside exhaustion after rallying 125% in a week.

Why is Tron (TRX) Price Rising So Much?

Tron has risen purely on so-called “animal spirits” prevalent in the crypto market after Donald Trump’s election win on Nov. 5.

Most top cryptocurrencies, including Bitcoin (BTC), Solana (SOL), and Ethereum (ETH), have rallied ever since, with memecoins like Dogecoin (DOGE) and pro-regulation cryptos like XRP and Cardano (ADA) outperforming the sector.

In addition, Tron has attracted buyers days after its founder, Justin Sun, emerged as the leading investor in Trump’s crypto venture, World Liberty Financial. He now owns over 55% of the project’s WLF tokens, amounting to $30 million.

Nonetheless, none of these events guarantees a 100% daily price increase, raising worries that TRX is repeating XRP’s “leverage-driven” price pump behavior.

During the token’s price rally, open interest in TRX futures surged from $156.54 million to over $436.50 million—a nearly threefold increase. Meanwhile, consistently positive funding rates reveal a bullish bias among traders, who are willing to pay premiums to maintain long positions.

Since Dec. 3, the TRX price pump has liquidated nearly $20 million worth of short positions, while the cost of long liquidations was around $9 million.

Overleveraged trading can create artificial price pumps not backed by organic demand or strong fundamentals. If too many traders open overleveraged bullish positions, the market can become unstable, resulting in large long liquidations, which, in turn, could crash TRX prices.

For instance, in April 2021, the spike in Tron’s OI—from $219.76 million to $746.95 million—preceded a 75% crash.

Tron Technical Analysis

TRX/USDT Daily Price Chart — A 15-25% Crash Likely Next

Tron’s price pump has brought its daily relative strength index (RSI) readings into extremely overbought zones. As of Dec. 3, the momentum indicator had reached 92.75, more than twelve points above the overbought threshold of 70.

Such elevated RSI levels often indicate that the asset is overvalued in the short term and may be due for a price correction or consolidation. TRX has already declined by over 20.75%, indicating profit-taking among traders.

As of Dec. 4, TRX was consolidating inside the $0.37-0.45 range. With RSI still overbought, the cryptocurrency’s next move could be a decline below the $0.37 support, which may send the price toward $0.32, aligning with the 0.382 Fibonacci retracement line.

Meanwhile, an extended decline could have TRX test the upper boundary of its previous ascending parallel channel pattern. This level coincides with the 0.5 Fib line of around $0.28, down about 25% from the current price levels.

TRX/USDT Weekly Price Chart — Last Resistance Before Price Discovery

On the weekly chart, Tron’s rally is showing signs of reversal after reaching its Fibonacci retracement target of $0.40, with overbought RSI furthering the downside outlook.

Returning from the $0.40 resistance level could have TRX eye a decline toward the next Fib support near $0.26, down about 30% from the current price levels. If profit-taking sentiment persists, the price can decline toward 0.786 Fib line of around $0.15, down 60% from current prices.

Conversely, a clear breakout above the $0.40 resistance could send TRX into a price discovery mode, with the next psychological target sitting at $0.50.