Is the decrease in the supply of Tron (TRX) going to raise the price to 0.4 USD?

The supply of Tron (TRX) is gradually falling, with nearly 89% of the circulating tokens locked in staking, creating a limited liquidity environment and increasing volatility in the market. This scarcity not only reinforces the bullish momentum but also opens up opportunities for a potential price of 1.1 USD.

However, limited liquidity also amplifies the impact of sudden unstaking events or cash flows into exchanges. While the long-term structure still maintains support, the short-term market conditions are somewhat fragile.

The market is currently at a decisive moment, where supply scarcity could trigger a strong bullish wave or lead to significant corrections.

Can the price of TRX maintain momentum above the bullish trend line?

The daily chart shows that TRX is still holding above an upward support trendline, reinforcing the bullish structure that has existed since July. The main resistance currently lies around 0.355 USD, while support has been reinforced near 0.331 USD, creating a clear price range for investors to monitor.

A breakout above resistance could trigger a bullish rally towards 0.4 USD, supported by increasing momentum.

However, if the bullish support trend is not maintained, TRX may face bearish risks. The ability to maintain higher lows is currently a key factor in shaping market sentiment.

Source: TradingView## The buying power of futures traders shows a boost in bullish trend.

The Delta volume index (CVD) reflects the increase in buying activity, confirming that traders in the futures contracts are actively betting on the bullish trend of TRX. The dominance of buying flow emphasizes the strong confidence behind the recent price resilience and indicates that derivative traders expect prices to continue to rise.

Although this position could drive bullish movements, it also increases the risk of volatility if the momentum stalls. A sudden shift in profit-taking or liquidation could quickly reverse gains.

However, as long as buying pressure remains dominant, the futures market will continue to reinforce the bullish momentum for TRX.

Source: CryptoQuant## Funding Rate continues to support bullish demand.

Funding rates on TRX futures contracts remain at a slight positive level of 0.009% at the time of writing, indicating that most traders are paying fees to maintain long positions. This positive trend reflects the strong confidence of participants using leverage and supports higher spot prices when combined with technical and on-chain signals.

However, high long positions often come with significant downside risk if funding rates become too hot.

However, the current positive levels still facilitate bullish without facing immediate liquidation risks. This balance keeps the overall market sentiment cautiously optimistic about the upcoming profits.

Source: Santiment## Can TRX maintain its bullish trend?

The scarcity of supply of Tron, high staking rates, upward support, dominant buying activity, and positive funding rates all indicate a sustainable bullish setup. However, these factors not only increase the potential for bullishness but also raise the risk of volatility, especially if unstaking or profit-taking increases.

In the short term, maintaining momentum above 0.355 USD may open up opportunities for subsequent bullish movements, while a drop below 0.331 USD will weaken the bullish case.

Currently, the market structure leans towards a bullish trend, indicating that Tron has a solid foundation to maintain its bullish position if demand remains stable.

Mr. Teacher